JAKARTA - PT Alumindo Lights Metal Industry Tbk (ALMI) planned to hold private placement to restore its financial statements from negative equity conditions.
The total number of new shares to be issued, through this private placement, is up to 3.03 billion shares. The nominal value of the new shares is set at IDR 250 per share, with an exercise price that has not yet decided.
"The company is in dire need of an improvement in its financial position (capital restructuring) due to its declining financial condition," said ALMI Management in a prospectus, submitted to Indonesia Stock Exchange.
By November 10, 2020, ALMI's total liabilities were recorded at IDR 1.76 trillion, 13.48% higher than its total assets of IDR 1.51 trillion. Hence, the total equity of this aluminum producer was recorded at minus IDR 249.78 billion.
The investors, who will subscribe to the new shares issued by ALMI, including PT Maspion Investindo and PT Maspion Trading. However, the management confirmed that ALMI would not receive fresh funds in cash from this private placement, because they would convert IDR 756.67 billion of debt to Maspion Investindo and Maspion Trading into additional paid-in capital.
After the private placement, Maspion Investindo and Maspion Trading were expected to remain as controlling shareholder of ALMI, with share ownership of 44.22% and 38.87%, respectively. Meanwhile, total public ownership was expected to decrease to 2.79%. (KR/VA)