Waskita Karya Sets Offering Price for Rights Issue at Rp 1,300 to Rp 1,650
Jakarta. State-controlled construction company Waskita Karya has set the offering price for its planned rights issue at between Rp 1,300 and Rp 1,650 per share, a company director revealed in a statement last week.
The builder plans to sell 4.08 billion shares, or 29.1 percent of its equity, which means proceeds from the rights issue are expected to reach Rp 5.3 trillion to Rp 6.73 trillion ($ 408 million to $517 million).
Shareholders in control of 100,000 existing shares will be given the chance to purchase between 32,385 and 41,104 shares before any other investors.
The company said it expected to secure approval from the Financial Services Authority (OJK) on June 8 and plans to hold an extraordinary general meeting of shareholders on June 10. The state builder has set a listing date of June 24.
In a presentation to the House of Representatives, executives revealed that Waskita Karya was currently working on five toll road sections worth a combined Rp 12.64 trillion.
The company is developing a 125-kilometer toll road project in southern Bali, Waskita president director M. Choliq said on April 23, for which the upcoming rights issue would provide Rp 3.16 trillion.
Waskita is also constructing a 500-kilovolt electric power transmission facility in Sumatra that is estimated to cost Rp 5.24 trillion, of which Rp 1.32 trillion is expected to come from the share sale.
The company is also planning a capital injection of Rp 4.3 trillion for its subsidiaries involved in property, toll road construction and the manufacture of precast concrete.
Of the amount, Waskita Toll Road will receive between Rp 2 trillion and Rp 3 trillion, Waskita Realty is set to get Rp 1 trillion, while Waskita Precast is to get Rp 300 billion.
The company has appointed Mandiri Sekuritas, Bahana Securities and Danareksa to manage the upcoming rights issue, according to Choliq.
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Source: The Jakarta Globe