JAKARTA. PT Provident Investasi Bersama Tbk (PALM) will initiate the capital increase with pre-emptive rights, also known as a rights issue, by offering 8.56 billion new shares.

The number of shares issued by PALM is equal to 55.01% of total issued and paid-up capital. Each share has a face value of IDR 15, and will be issued with offering price of IDR 418 each. With this price, PALM is looking at total proceeds of up to IDR 3.62 trillion from this rights issue.

The ratio applied to this upcoming rights issue is 301:368. With this ratio, for every 301 shares, PALM’s shareholders will gain 368 pre-emptive rights, each of which grants them the rights to acquire one new shaer.

As of now, PT Provident Capital Indonesia (PCI), the controlling shareholder of PALM, has claimed its rightful portions of 45.80%. Then, PCI will also act as a standby buyer in this corporate action.

The recording date of this rights issue is scheduled on March 18, 2024. The distribution of the pre-emptive rights will fall on March 19, followed by the listing of those new shares on Indonesia Stock Exchange (IDX) on March 20, 204.

In the issued prospectus, PALM says to allocate IDR 3.61 trillion of the rights issue proceeds as capital investment in PT Alam Permai. This capital investment will then be utilised to pay off entire loans of PT Alam Permai owed to several creditors, which is related to the acquisition of PT Merdeka Battery Materials Tbk (MBMA). (KR/ZH)