JAKARTA. The owner of Mitra10 building materials store, PT Catur Sentosa Adiprana Tbk (CSAP), will conduct a rights issue of 1.22 billion shares, or 21.55% of the total issued and paid-up capital of the company. Setting the offering price to IDR 700 per share, the company aims to raise IDR 857.37 billion in total.

This capital increase with pre-emptive rights will make every 91 old shares listed by July 12, 2023, at 4 PM WIB, are entitled to 25 pre-emptive rights. Then, each pre-emptive right will grant the holder to buy one new share.

In the prospectus today (3/7), the management mentioned that CSAP had gathered commitments from existing institutional investors to participate in this rights issue. Those investors in question are PT Buanatata Adisentosa, the owner of 32.01% of CSAP’s shares, SCG Retail Holding Co Ltd of 30.89%, NT Asian Discovery Master Fund of 13.18%, and Albizia Asean Opportunities Fund of 10.00%. Lastly, Budyanto Totong, the owner of 5.580% of CSAP’s shares, is said to partake in this corporate action by exercising his entire rights.

The proceeds of the rights issue will be used to increase capital investment in its subsidiary, PT Catur Mitra Sejati Sentosa (CMSS). CMSS will utilise the allocated IDR 415 billion to acquire a piece of land of 20,919 m2, as well as a building of 22,070 m2 located at Cibubur Alternative Street KM 14.

Then, another IDR 350 billion will be used to open more outlets, of a maximum 6 stores of Mitra10 located in North Sumatra, Jambi, West Java, Banten, East Java, or Bali.

CSAP has set the recording date on July 12, 2023, with the cum and ex rights issue in the regular and negotiation market on July 10-11, as well as the cum and ex rights issue in the cash market on July 12-13. The distribution of these pre-emptive rights will take place on July 13, 2023, followed by the listing on Indonesia Stock Exchange (IDX) on July 14, 2023. (AM/ZH)