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PANI - IPO CBDK – Price at IDR3,000-4,060 per share Bangun Kosambi Sukses (CBDK), a subsidiary of Pantai Indah Kapuk Dua (PANI), in which PANI holds a 51.0% stake, plans to offer up to 566,894,500 shares (10% of its outstanding shares after the IPO) to the public. The company has set the initial offering price (bookbuilding) in the range of IDR3,000–4,060 per share, with a maximum IPO value of IDR2.3 tn. The bookbuilding period is scheduled to take place from December 13 to December 20, 2024. Trimegah Sekuritas will act as the underwriter for the issuance of these securities. Currently, Bangun Kosambi Sukses (CBDK) focuses on real estate development in the Tangerang area through its subsidiaries. For the six-month period ending June 30, 2024, the company's revenue was predominantly derived from real estate, accounting for more than 99% of its consolidated net revenue. (Source : Prospectus) Comment : Revenue from operational segments is predominantly derived from the real-estate segment, contributing 99% to consolidated revenue. All revenue from CBDK originates from Greater Tangerang. As of 1H24, revenue declined by 21.9% yoy due to delays in several project hand-overs. However, revenue growth has been remarkable over the years, increasing from IDR125.1 bn in 2021 to IDR573.9 bn in 2022 and reaching IDR3.1 tn in 2023. Key projects by the company and its subsidiaries include Permata Hijau Residences (priced at IDR6.0–11.0 bn), Manhattan Residences (IDR7.5–11.0 bn), and Rumah Milenial (IDR1.5–4.2 bn). The Rumah Milenial project is expected to benefit significantly if the 11% VAT subsidy (PPN DTP) is extended, given the strong demand for landed-houses, particularly among young couples. As of 1H24, short-term contract liabilities increased by 28.7% ytd to IDR7.7 tn, signaling a likely acceleration in project hand-overs next year. The IPO price range of IDR3,000–4,060 implies a P/BV of 2.1–2.8x, higher than peers such as BSDE (0.7x), CTRA (1.0x), SMRA (1.1x), and PWON (0.9x). This translates to a market cap of IDR17.0 tn. On a P/E basis, the IPO price suggests a range of 20.7–28.0x, compared to BSDE (7.7x), CTRA (13.2x), SMRA (11.2x), and PWON (9.8x).