Krakatau Steel sets rights issue price range at Rp 500-565
Wednesday, October 5 2016 - 06:04 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk announced Tuesday it has set the price range for a planned rights issue at between Rp 500 and Rp 565 per share.
The state-controlled company said in a statement it plans to issue between 3.31 billion and 3.75 billion of new shares.
Shareholders approved the proposed rights issue in August. The company hopes to obtain approval from the Financial Sector Authority on October 10, in the hope that the rights issue can be launched on October 24-28.
As has been previously reported, the state-controlled Krakatau aims to obtain Rp 1.5 trillion of capital injection from the government via the rights issue program, and about Rp 375 billion from private investors, making total proceeds of Rp 1.87 trillion.
The bulk of the proceeds will be used to help finance the construction of a second hot strip mill, and a 1x150 MW coal-fired power plant.
Editing by Reiner Simanjuntak