PTChandra Asri Petrochemical seeks to raise US$130 mln through sale of new shares to finance expansion

01-Oct-13

PT Chandra Asri Petrochemical (TPIA) is seeking US$130 million from selling new shares to finance its expansion. Chandra Asri president director Erwin Ciputra said all funds that were raised from the offering would be used to increase naphtha cracker capacity and inject capital into a joint venture to develop a synthetic butadiene rubber plant. The company has filed registration documents with the Financial Services Authority (OJK) regarding its plan to issue 220.77 million new shares, or equal to 7.2% of its enlarged capital, in a preemptive rights issue. The company is offering its shares at Rp 6,750, expecting to raise Rp 1.49 trillion (US$130 million). The price offered in the preemptive rights issuance almost doubled by close of trade last Friday at Rp 3,500. Every shareholder owning 500 shares is entitled to 36 new shares. Serving as standby buyer is Magna Resources Corporation Pte. Ltd., which is the majority shareholder of Barito Pacific-Chandra Asri.