JAKARTA. PT Provident Investasi Bersama Tbk (PALM), an agricultural company used to be known as Provident Agro, will hold its capital raise with preemptive right, also known as rights issue. 

Through this corporate action, PALM will issue 21.28 billion shares. The number of shares that will be offered is equal to 74.93% of its total issued and paid-up capital of the company post rights issue. 

Each new share of PALM will have a face value of IDR 15 per share. Meanwhile, the offering price is yet to be determined.

In the information disclosure in Indonesia Stock Exchange (IDX), the management of PALM will firstly ask for approval from shareholders regarding this rights issue plan. The Extraordinary General Meeting of Shareholders is scheduled on January 10, 2024. 

In general, PALM will spend all the proceeds of the rights issue to expand its investment portfolio in the form of acquisition of shares or other capital. This investment will not be limited to natural resources. Instead, it will open opportunities to invest in other sectors, including technology, media, telecommunication, and logistics. 

In addition, the company plans to allocate some of the rights issue proceeds to pay off loans and improve subsidiaries' working capital. (KR/ZH)