PT Evergreen plans to raise US$2.3b
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