PT Ever­green plans to raise US$2.3b

The Sun (Malaysia) - - SUNBIZ -

JAKARTA: In­done­sian tex­tile ma­te­ri­als trader PT Ever­green In­vesco Tbk plans to raise around US$2.3 bil­lion (RM9.5 bil­lion) in an eq­uity rights is­sue to pay off debt and set­tle obli­ga­tions, in what would be the coun­try’s big­gest stock of­fer­ing in eight years.

Ever­green said in an an­nounce­ment to the Jakarta stock ex­change it plans to raise about 30 tril­lion ru­piah (RM9.4 bil­lion) by is­su­ing up to 150 bil­lion new shares at an as yet un­de­ter­mined price.

A Reuters cal­cu­la­tion shows that would mean the shares will be priced at around 200 ru­piah each, a 7% pre­mium to the stock’s 187 ru­piah clos­ing price on Fri­day, when Ever­green made the an­nounce­ment.

Nat­u­ral Crys­tal Hold­ing Inc, a pri­vate com­pany based in the Vir­gin Is­lands, and First Ven­ture Lim­ited to­gether own nearly 60% of Ever­green, ac­cord­ing to Thom­son Reuters data.

If its main share­hold­ers do not sub­scribe to the of­fer­ing, Ever­green said it will ask a third party, who may in­clude its cred­i­tors, to act as a stand-by buyer. It did not iden­tify the po­ten­tial third-party buyer.

Mem­bers of the pub­lic who don’t ex­er­cise their rights will see their share­hold­ing di­luted to 1.5% from 40.53%, the com­pany added. The funds from the rights is­sue will be used to “ful­fill our obli­ga­tions”, it said.

Ever­green was not im­me­di­ately avail­able to com­ment.

At US$2.3 bil­lion, Ever­green’s of­fer­ing would be the big­gest eq­uity fundrais­ing in In­done­sia since PT Bakrie & Brothers Tbk raised US$4.4 bil­lion in 2008.

Ever­green shares fell 1.1% to 185 ru­piah yes­ter­day, slightly un­der­per­form­ing the broader Jakarta stock ex­change. The In­done­sian stock mar­ket was closed on Mon­day for a pub­lic hol­i­day.

The tex­tile sec­tor is still slug­gish due to an over­sup­ply and the rights is­sue could be a means for the lit­tle-known com­pany to pay off its debt, an­a­lysts said. – Reuters

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