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tate-owned construction firm PT Adhi Karya plans to hold a preemptive rights issuance on Sept. 10, a long-awaited action to disburse an allocated Rp 1.4 trillion (US$103.8 billion) of state capital injection to kick off its light rail transit (LRT) project.

The publicly listed company announced on Thursday that it planned to issue around 1.82 billion new shares or as much as 50.2 percent of its enlarged capital.

'€œThe new shares will be priced at between Rp 1,510 and Rp 2,400 per piece,'€ the firm said in a disclosure published on the Indonesia Stock Exchange (IDX).

According to the disclosure, the firm aims to reap a total of around Rp 2.75 trillion in fresh funds, with the Indonesian government exercising its right to maintain its ownership in the firm.

The government, through the state-owned enterprises minister, has a 51 percent stake in Adhi Karya.

Under such conditions, the government will absorb around Rp 1.4 trillion of the rights issuance through the disbursement of the state capital injection.

Adhi Karya'€™s rights issuance is subject to approval from an extraordinary shareholders meeting that will take place on Aug. 27.

The company had initially planned to carry out the rights issue in late June or early July this year, but it was delayed because the issuance of a related presidential regulation was later than expected.

President Joko '€œJokowi'€ Widodo signed a presidential regulation on the disbursement of the state capital injection for Adhi Karya early last month, along with a similar regulation for state-run construction firm PT Hutama Karya.

Adhi Karya is one of 40 state enterprises that are set to obtain a total of Rp 64.82 trillion in capital injections this year, with most of the funds allocated to boost the state'€™s ambitious infrastructure projects.

Adhi Karya'€™s president director Kiswodarmawan said recently that his firm would use the funds raised from the preemptive rights issuance to partly finance the first development phase of its LRT project operating from East Bekasi to Dukuh Atas and Cibubur to Cawang.

'€œThe government will buy the LRT once it'€™s operational and Adhi will use the purchasing funds to finance the next development stage of the LRT,'€ he said.

The firm has estimated that total investment for the LRT'€™s first development phase will hit Rp 12.57 trillion, while the complete project is forecast to cost between Rp 35 trillion and Rp 40 trillion.

Adhi plans to finance 20 percent of the needed investment with its equity, while the remaining 80 percent will come from loans.

The firm'€™s total liabilities stood at Rp 9.57 trillion and its equity hit Rp 1.58 trillion as of the end of May this year, according to its audited financial report.

Adhi has just booked a new contract worth Rp 493.69 billion for the construction of buildings to support the operation of Manggarai to Jatinegara railways.

The firm, according to Kiswodarmawan, booked Rp 70 billion in net profit in the first half of this year.