JAKARTADAILY.ID – PT Chandra Asri Petrochemical Tbk, Indonesia’s largest integrated petrochemical company, raised additional capital of Rp 15.5 trillion ($1.1 billion) from a limited public offering.
In a statement on Sept 15, 2021, Chandra Asri said after the rights issue, the company's total outstanding shares increased by 3.79 billion to 21.6 billion and the composition of public shares stood at about 8.2 percent. This level meets the free-float requirements of the Indonesia Stock Exchange.
This so-called Pre-Emptive Rights Issue was claimed as close to one of the largest rights issues ever done in the Indonesia Stock Exchange to date.
Chandra Asri said its Limited Public Offering III has obtained an effective statement from the Financial Services Authority or OJK.
The standby buyer of the rights issue was PT TOP Investment Indonesia, a subsidiary of Thai Oil Public Company Limited (Thai Oil), the flagship refiner of PTT Public Company Limited (PTT).
In July 2021, Chandra Asri had announced the selection of Thai Oil as its chosen partner to support the development of Chandra Asri’s second petrochemical complex (CAP 2), "after a robust and comprehensive strategic investor selection process," the company said.
Construction of world-scale integrated petrochemical complex
The net proceeds raised will be used for the development and construction of Chandra Asri’s second world-scale integrated petrochemical complex run by its subsidiary PT Chandra Asri Perkasa.
The plant will comprise, among others, a cracker unit, polymerized olefins, and related facilities and utilities.
Chandra Asri said the development of the second petrochemical complex is part of its plans to expand its production capacity and business scale to "serve the needs of the Indonesian market."
"We are delighted with the successful completion of our rights issue, and welcome Thai Oil as a new principal shareholder of Chandra Asri. The financing raised provides us with a solid equity base to proceed with our plans to develop our second petrochemical complex expeditiously," said Suryandi, Director Human Resource and Corporate Affairs of Chandra Asri.
"We are grateful for the continuous support of our shareholders, investors, regulators, and other key stakeholders to make this transaction a resounding and tremendous success."
After the rights issue, Thai Oil via its subsidiary now holds a 15 percent stake in Chandra Asri and became a part of the key major shareholders of Chandra Asri, alongside Barito Pacific and SCG Chemicals.
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