JAKARTA. PT Trada Alam Minera Tbk (TRAM) plans to conduct a rights issue by issuing 201.43% of its issued and paid-up capital.
TRAM will issue as many as 100 billion new shares, which constitute 201.43% of its issued and fully paid capital, with a nominal value of Rp 100 per share. Along with the rights issue, TRAM will also issue as much as 14 billion Series III warrants that can be converted to 14 billion new shares.
Head of Research in Koneksi Kapital Indonesia, Alfred Nainggolan, considers TRAM's rights issue will not be too attractive to investors. The reason is that in terms of fundamentals, the price-earning ratio (PER) of TRAM has reached 59.5 times by the time of trading in Wednesday (3/7). This figure is far higher than other coal mining companies, such as PT Bukit Asam Tbk (PTBA) which has a PER of 7.59 times and PT Adaro Enegery Tbk (ADRO) which has a PER of 6.42 times.
The number of new shares to be released by TRAM is quite fantastic, said Alfred. "For example, TRAM sells shares at a price of Rp. 100, so TRAM has a fresh fund of Rp. 10 trillion. This is fantastic, especially with the scale of TRAM which is not a big player in coal. The question is what is the use of this fund," he said as quoted by Kontan.co.id. (AM/AR)