Tire maker PT Multistrada Arah Sarana Tbk (MASA) today launched a Rp1.53 trillion rights issue by issuing 3.06 billion new shares at an exercise price of Rp500 a share.
In the rights issue prospectus published today, each holder of two existing shares will entitle 1 rights to buy 1 new share to be issued by Multistrada, a maker of Achilles, Strada, and Corsa tires.
About 26% of the proceed will be used by the company to expand business into rubber plantation, 44% will be used to buy production facility equipments, and the remaining is used as working capital.
PT Central Sole Agency, PT Buana Capital, PT Equator Capital, Partners, and PT Sinarmas Sekuritas will act as standby buyers for the rights issue at the exercise price of Rp500. Post the rights issue, Central Sole, Buana Capital, Equator, and Sinarmas Sekuritas will hold 15.66%, 4.98%, 6.70%, and 2.87%.
In the first 8 months of 2011, Multistrada recorded Rp1.79 trillion net sales, 89% of the full year of 2010 at Rp2.01 trillion.
Operating profit reached Rp195.88 billion in 8M 2011, counting 83.58% of the full year of 2010 at Rp234.34 billion. Multistrada's net profit was Rp157.79 billion, representing 89.61% of 2010's figure at Rp176.08 billion.
Disclosure: No position at the stock mentioned above.
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