Jul 25, 2011

Citra Marga sets non-preemptive rights

Toll road operator PT Citra Marga Nusaphala Persada Tbk (CMNP) aims to issue a 10% non-preemptive rights in a bid to seek cash to develop business.
Citra Marga Indrawan Sumantri said the company schedules an extraordinary of shareholders meeting on August 10 to seek approval on the non-preemptive rights.
"The new shares issuance is like a private placement. However, we haven't decide yet who investors act as standby buyers," he said as quoted by Bisnis Indonesia today.
Indrawan is unwilling to explain further details about the fund raising action. Referring to the closing price on Friday last week, the 10% new shares issuance will entitle Citra Marga with Rp250 billion proceed. Price to earning ratio (PER) of Citra Marga is at 6.14x, far below from PER of Jasa Marga at 20.79x.
According to Indrawan, the proceed will be used by the operator to support expansion and make the shares more liquid.
In the first half of 2011, he said the company is estimated to record Rp170 billion in net profit, a 14.09% increase from Rp149 billion. The figure is in line with the target of the full year of Rp325 billion. Revenue is expected to increase 10% in the first half of this year.

Disclosure: No position at the stock mentioned above.

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