JAKARTA. PT Sreeya Sewu Indonesia Tbk (SIPD), a poultry farm company, will issue 500 million series C shares with preemptive rights, or also known as rights issue.

The number of shares issued in this corporate action will be equal to 27.19% of SIPD’s issued and paid-up capital. The rights issue has actually been planned by the company since October 2022. However, based on the company’s latest disclosure, the rights issue will only take effect on May 29, 2023.

PT Great Giant Pineapple (GGP), as the controlling shareholder, will step in as the standby buyer in SIPD’s rights issue. The shares that will be claimed by GGP in this rights issue clock up to 61.05 million units.

As of now, GGP has a claim over 87.79% of series C shares of SIPD, whereas public investors share the remaining 6.81% of series C shares, 4.86% of series B shares, and 0.55% of series A shares.

In the future, approximately 75% of the proceeds of SIPD’s rights issue will be allocated as capital expenditure (capex) in order to acquire landbank and build a production facility in East Java. Then, the remainder will be used as the working capital for the company and its subsidiaries. (KR/ZH)