May 16, 2011

Chandra Asri sets Rp1.9 trio rights issue

A publicly listed petrochemical manufacturer PT Chandra Asri Petrochemical Tbk (TPIA) today announced a fund raising of Rp1.90 trillion-Rp3.60 trillion in a proposed rights issue of 827.87 million new shares or 21% of its enlarged capital.
Chandra Asri, the maker of propylene and polypropylene, will use 90% of the proceed for capital expenditure regarding to debottlenecking plan and expand its facility and the remaining is for general purpose, a prospectus of rights issue revealed today.
Chandra Asri, which was merged with PT Tri Polyta Indonesia Tbk, has set the exercise price of rights issue at Rp2,300-Rp4,350 per share. Each holder of 100 existing shares will entitle 27 new shares.
The company, which is controlled by Indonesian businessman Prajogo Pangestu via PT Barito Pacific Tbk and Marigold Resources Ptd, has mandated four standby buyers dubbed PT DBS Vickers Securities Indonesia, Deutsche Bank AG, PT Morgan Stanley Asia Indonesia, and UBS AG.
During the rights issue, three controlling shareholders namely Barito Pacific, Apleton Investment Ltd, and Marigold Resources Ptd Ltd won't exercise their rights and decide to sell the rights to the standby buyers. 
Barito, Apleton, and Marigold will entitle with 785.43 million new shares. The underwriters will offer the shares to both local and foreign investor.

Disclosure: No position at the stock mentioned above.  

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