JAKARTA - PT Jaya Agra Wattie Tbk (JAWA) is targeting the reduction of liabilities-to-asset ratio to 64% from 98% after its private placement. In June 2023, assets were recorded at IDR 3.64 trillion, while liabilities clocked up to DIR 3.57 trillion.

In issued prospectus quoted today (6/10), the issuer will issue 12.45 billion shares or 76.75% of its issued and paid-up capital post private placement. The price set for this corporate action is IDR 100 per share, thus resulting in raised funds of IDR 1.24 trillion. It will then be converted to the company’s debts.

The debts converted from PT Sarana Agro Investama (SAI), primary shareholder of JAWA, amounting to IDR 1.24 trillion, consist of facility I of IDR 245.82 billion, with an interest of 10.16%, and facility II of IDR 1 trillion, with an interest of 7.5%-8.5%.

After this private placement, JAWA’s liabilities will drop to IDR 2.32 trillion from IDR 3.57 trillion, while total assets remained at IDR 3.64 trillion, and total equity rose from IDR 73.52 billion to IDR 1.31 trillion.

Net working capital was still deficient, at IDR 328.01 billion, similar to liquidity ratio at 0.47%, while debt-to-equity ratio dropped significantly from 48.56% to 1.76%. (LK/ZH)