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State-run developer ADHI to launch rights issue to fund strategic projects
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Top priority: An LRT station on Jl. Rasuna Said in South Jakarta is under construction in this undated photograph. (JP/R. Berto Wedhatama)
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T Adhi Karya (ADHI) is seeking to raise trillions of rupiah in a rights issuance scheduled for October to finance the state-owned firm’s infrastructure projects, including a toll road linking Yogyakarta to its nearby international airport.
The publicly listed developer will issue some 7.12 billion Series B shares at around Rp 100 (0.7 US cents) per share. Some Rp 1.97 trillion worth of the bonds will be bought by the government through a state capital injection (PMN) scheme and the remaining will be available to private investors.
Of the total PMN figure, the lion’s share, some Rp 1.4 trillion, will go toward the construction of a 96.57-kilometer toll road connecting Solo, Yogyakarta and the Yogyakarta International Airport (YIA) in Kulon Progo.
The remaining funds, meanwhile, will be allocated to the Yogyakarta-Bawen toll road and the Karian-Serpong drinking water supply system (SPAM), accounting for Rp 400 billion and Rp 200 billion, respectively.
According to the prospectus released on Tuesday, the company will use any additional funds from the rights issuance for the construction of national strategic projects and other projects, such as toll roads, drinking water supply systems and waste management facilities.
In July, House of Representatives Commission VI overseeing trade and industry approved the rights issue plan by several state-owned companies, including steelmaker Krakatau Steel and lender Bank Tabungan Negara
State-Owned Enterprises Minister Erick Thohir said the rights issuance was aimed at maintaining those companies’ cash flows.
“Not just any [state-owned] company can be allowed to launch a rights issuance. The additional capital targets state-owned companies with good prospects and potential for the future,” he said in a statement released on Aug. 18.
Adhi Karya's revenue increased by 42.34 percent year-on-year (yoy) to Rp 6.32 trillion in the first half of the year, while its net profit rose 23.53 percent to Rp 10.23 billion in the same period.
Meanwhile, the company saw its cost of revenue rise 49 percent to Rp 5.62 trillion in the same period.
