JAKARTA. Some issuers have started boosting capital in Indonesia Stock Exchange (IDX) by releasing pre-emptive rights and without pre-emptive rights. Aside of gaining fresh funds, the issuing may also increase share liquidity in the market.
Recently, PT J Resources Asia Pasicifc Tbk (PSAB) will inject at maximum of 10% of it's subscribed and issued capital to issue without pre-emptive rights. This company will issue at maximum 2.64 billion stakes with a nominal value of Rp 20 per share.
PSAB will offering these rights at minimum Rp 359.2 per share, based on the price of PSAB shares during 25 days in IDX.
The issuing will inject about Rp 948.28 billion of funds to the company. In addition to accumulating capital, PSAB also plans to increase the number of circulating shares in order to increase the company's share liquidity.
After the rights issue, the total of cash and cash equivalent of PSAB will raise from US$ 6.2 million to US$ 75.09 million. The total asset will increase from US$ 829.4 million to US$ 898.33 million, while the equities will increase from US$ 317.28 million to US$ 386.18 million.
Recently, J Resources Mining Limited and public own 92.5% and 7.5% of PSAB shares, respectively.
Recently, PSAB have divided stock split with a ratio of 1:5 so that the number of issued shares and paid-up shares increase to 26.46 billion of shares.
Previously, Director of PSAB William Sunarta said that the company issuing the new shares in order to boost the number of free float. He expected that the free float may gradually hit the level of 20%.
PT Greenwood Sejahtera Tbk (GWSA) also will issue new shares through without pre-emptive rights. The Main Director of GWSA Paulus Indra Intan said that the company will issue 2.5 billion shares with a nominal price of IDR100 per share. This is expected to inject IDR250 billion of funds to GWSA.
However, the company still not yet set the date to inject the capital. Paulus added that the accumulated capital will be allocated for strengthening equities, providing new business opportunities, and supporting business growth.
The issuers of PT Siloam International Hospitals (SILO) will also inject new capital through a worth of IDR1.3 trillion of without pre-emptive shares. Previously, CVC Capital Partners Ltd has acquired 15% of SILO shares.
Head of Research of Universal Indonesia Satrio Utomo said that the shares liquidity in IDX have improved. IDX also have set minimum free float at 7.5%. The regulation has encouraged issuers to release new shares and conduct stock split.
According to Satrio, liquidity will improve if Jakarta Composite Index (JCI) move at above of 5,000. For an example, shares of some sectors, such as coal have already hiked. This condition will lead issuers to increase equities through IDX.
Editor: Sanny Cicilia