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Eastparc shifts IPO funds for working capital

11 February 2021 15:23

JAKARTA - PT Eastparc Hotel Tbk (EAST), the manager of Hotel Eastparc Yogyakarta, has shifted the use of proceeds from the initial public offering (IPO) which were originally for the construction of new hotels and debt payments to working capital. This was conveyed by Muhammad Anis, Director of PT Eastparc Hotel Tbk (EAST) in an information disclosure quoted on Thursday (11/2).

He said that the transfer of proceeds from the IPO had been approved at the Extraordinary General Meeting of Shareholders (EGMS) which took place yesterday (10/2). "The voting results show that shareholders agree on 99.99% change in the use of IPO proceeds for working capital," he said.

On June 26, 2019, EAST's management earned a net proceeds from the IPO of IDR 46.64 billion, of which the funds are planned to be allocated for the construction of a new hotel of IDR 4.64 billion, debt payments of IDR 26.25 billion, as well as businesses outside core business IDR 13.65 billion, and asset maintenance costs IDR 2.10 billion.

Until January 2020, the realization of funds for the construction of a new hotel was IDR 4.64 billion and IDR 35.82 billion for debt payments in banks, and the remaining IDR 6.17 billion was placed in deposits and current accounts at Bank Bukopin, CIMB Niaga, and Mandiri Bank. (LK/LM)

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