JAKARTA. PT Tunas Baru Lampung Tbk (TBLA) plans to issue 768.43 million shares with pre-emptive rights, also known as a rights issue.

In the published prospectus, the new shares issued by TBLA are said to have a face value of IDR 125 each. However, the company has yet to set the offering price for this upcoming corporate action.

“The entire proceeds will be utilised by the company to raise its working capital, which will be spent on palm and sugar cane plantation, as well as raw materials,” the management of TBLA mentioned in the information disclosure.

PT Sungai Budi, as the primary shareholder, decides not to exercise its rights. Instead, it will reassign those rights over TBLA’s new shares to PT Budi Delta Swakarya (BDS).

BDS has then confirmed its decision to exercise its own allocated rights, as well as the additional rights transferred by Sungai Budi.

For the record, TBLA’s old investors who refuse to partake in this corporate action will have their portions diluted by up to 12.58%. (KR/ZH)