Chandra Asri seeks to raise Rp 5.04t via rights issue
Wednesday, August 16 2017 - 12:35 PM WIB
The company said in a statement on Tuesday that it has obtained the Effective Statement Letter from the Financial Services Authority (OJK) in connection with Limited Public Offering II for additional capital with Pre-emptive Rights (rights issue).
The company said proceeds from the rights issue will be used by the company to finance its capital expenditures for additional production capacity and/or product diversification and other capital expenditures to expand its business scale.
Furthermore, this corporate action is to comply with the minimum requirements of free float shares in accordance with the Provisions of V.l of the Indonesia Stock Exchange Regulation No. I-A, the company added.
The company said it will offer 279,741,494 new shares with par value of Rp1,000 per share. Every holder of 47 shares is entitled to 4 rights. Every 1 rights reserves the right to purchase 1 new share with an Exercise price of Rp18,000. It is estimated that CAP can absorb a rights issue proceeds up to Rp 5 trillion. According to Deutsche Bank AG, Hong Kong branch, the Sole Global Coordinator, "This transaction (rights issue) is the largest in Indonesia throughout 2017 year to date (YTD). In addition, it also became the largest public offering of petrochemical sector in Indonesia until 2017 YTD".
The Chandra Asri placement was well-received in the market with books oversubscribed in the end. A significant portion of the book was committed to a large Thai anchor investor, local and international long-only investors, multi-strategy funds as well as insurance companies. The placement order book was allocated very tightly with top five investors getting 90 percent of the total book and top 10 investors getting 95 percent of the total book.
Erwin Ciputra, the President Director of CAP, thanked shareholders, investors and stakeholders for their strong support in this capital market transaction and commented that the depth and profile of the new investors further lay the foundation for Chandra Asri to extend its petrochemical footprint in Indonesia and the realization of a second petrochemical complex in the future.
In this corporate action, the shareholders, PT Barito Pacific Tbk, Marigold Resources Pte. Ltd., and Prajogo Pangestu will not exercise its rights. While SCG Chemicals Co., Ltd. intends to exercise all of its rights . As for the standby buyer is PT. Mandiri Sekuritas.
Editing by Reiner Simanjuntak