Krakatau to raise Rp 1.87t via rights issue

By Romel S. Gurky

IDX-listed steel maker PT Krakatau Steel Tbk said it has recently obtained shareholders? approval to launch rights issue in the hope to raise around Rp 1.87 trillion in proceeds.

The state-controlled company said in a statement Monday that about 66 percent of the net proceeds will be used to help finance the construction of a second hot strip mill, with a capacity of 1.5 million tons per year.

The remaining will be used to help finance the construction of a 1x150 MW coal-fired power plant.

As has been previously reported by this portal, Krakatau plans to launch rights issue after the government agrees to inject equity worth Rp 1.5 trillion.

Editing by Reiner Simanjuntak