JAKARTA. PT Smartfren Telecom Tbk (FREN), a telecommunication company under Sinarmas Group, will issue the capital increase with preemptive rights, also known as rights issue. 

The number of newly issued shares is 171.45 million shares. Each share has a face value of IDR 50, and will also be offered for IDR 50 each.

The management of FREN said that for every 178 old shares, the holder will be entitled to gain 178 preemptive rights, each of which will grant the owner to acquire one new share of the company. 

"In this rights issue, there will be no standby buyer," added the management of FREN.

With the offering price being set, FREN will potentially rake in fresh funds of IDR 8.57 billion from this rights issue. IDR 5.48 billion of it will then be allocated by the company to pay off principal and interest of loans, leaving the remaining to the working capital. (KR/ZH)