PT P GROUP COMPANY VALUATION AS PREPARATION FOR INITIAL PUBLIC OFFERING IMPLEMENTATION

• Main Author: AJIPRATAMA (NIM : 29109103); Pembimbing : Dr. Ir. Budhi Arta Surya, MSc.; Erman Sumirat SE.M.Bu, BIMA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18163
• Institution: Institut Teknologi Bandung

PT P Group is a holding company focusing in hotel industries, property, tour & travel, hotel management and education business with total holding of 10 bisnis unit. Nowadays tourism industries are growing very fast, proven by a lot of new hotel,resort, apartement and condotel mainly in major city in indonesia. PT P Group business development focuses on developing resort & villa especially in the center of tourism location like Bali and Cipanas Garut, the business development itself will <br /> <br /> <br /> <br /> <br /> require a huge financing for the company and will be develop together in 5 different areas.The problem faced by PT P group is the company’s capital structure that will <br /> <br /> <br /> <br /> <br /> be less optimal if the project is financed by debt since the company’s debt-to-equity ratio already reach almost 413% in the last 5 years, far beyond the average DER of <br /> <br /> <br /> <br /> <br /> another company in same industries. This study will be focused on financing alternative for the expansion of the company, especially equtiy financing through initial public offering. This study aims to define the strategy for the company to go on IPO process, start from selection of bussines unit, financial statement projection,company valuation, stock price suggestion, and the number of shares suggestion.Result of valuation using discounted cash flow and relative valuation method with consolidation of 6 bisniss unit and projection wihtin 5 years shows the value of the company amount 753 billion Rupiah and equity value amount 381 billion Rupiah, with the reasonable stock prices on 42 rupiah per share up to RP 326 per share. With <br /> <br /> <br /> <br /> <br /> benchmarking among 8 other companies in the same industries, this stock prices is under the average price per share of other company in same industries, so the <br /> <br /> <br /> <br /> <br /> company expectation that the share will be fully absorbed by the pubic will be more possible.In the implementations of IPO process, the first things to do is forming an underwriting syndicate which serves to prepare the whole initial public offering process. The decided time to do the IPO also based on external situation so it would be better if the company wait until the Indonesian capital market stabilized after the European crisis, because the crisis will be affecting the public purchasing power for the equity investment.