JAKARTA - PT Kimia Farma (Persero) Tbk (KAEF) plans to increase its capital through a rights issue. In the corporate action, the company will issue 1.57 billion shares or 22.14% of its placed and paid-up capital.
As reported by CNBC Indonesia, Kimia Farma will seek shareholders’ approval of the rights issue plan at an EGM on September 18, 2019.
Assuming that the new shares would be released using Tuesday’s (13/8) closing price of Rp 3,080 per share, the company could potentially earn proceeds amounting to Rp 4.86 trillion.
The corporate action plan has been indicated by Kimia Farma CEO Honesti Basyir recently due to the company’s need of funds to develop its businesses going forward. According to Mr Basyir, through the rights issue public ownership in Kimia Farma would increase from the current percentage of 9.97% or 554 million shares. (MS)