The Jakarta Post
PT Chandra Asri Petrochemical (CAP), the country’s largest integrated petrochemical manufacturer, has concluded its Rp 5.03 trillion (US$378 million) rights issue, bringing its free float in compliance with an Indonesia Stock Market (IDX) regulation.
CAP president director Erwin Ciputra said the rights issue was oversubscribed, before it officially concluded on Sept. 8. “Investor enthusiasm for the company’s rights issue is very big, as reflected in the oversubscription of new shares,” Erwin said in a press statement on Wednesday in Jakarta.
After the rights offering, the company’s floating stock increased 279.74 million units to 3.57 billion units with a 9.06 percent free float. The IDX obliges all publicly listed companies to have a minimum free float of 7.5 percent.
Erwin further explained that the proceeds from the rights issue would be used to strengthen the company’s capital expenditure (capex), increase production capacity and diversify its products.
The three-largest shareholders in the company, namely PT Barito Pacific, Marigold Resources Pte. Ltd. and tycoon Prajogo Pangestu, did not execute their rights to increase their stock, while Singapore-based SCG Chemicals Co. Ltd. exercised its rights. (ags)