JAKARTA - PT Vale Indonesia Tbk (INCO) is allocating 79.34% or IDR 1.46 trillion of total rights issue proceeds, which involves the issuance of 603.4 million shares on the next two weeks (24/6). The proceeds are targeted to reach IDR 1.84 trillion.

In the information disclosure quoted Tuesday (11/6), Natasya Suherto, Corporate Secretary of INCO, mentioned that the offering price is set to IDR 3,050 per share. The rights issue ratio is 8,233:500, meaning that the owner of 8,233 shares is entitled to gain 500 new shares.

As quoted from the short prospectus, nearly 80% of rights issue proceeds will be used as capital expenditure (capex), which consists of IDR 1.11 trillion for establishments of camp, office building, workshop, and storage warehouse; another IDR 335.45 billion for settling basin, access road, hauling road, and stockpile in Pomalaa Block, Kolaka, Southeast Sulawesi; and IDR 15.11 billion for vehicle tools and accessories’ purchase.

Approximately 20% or IDR 380 billion will be used as working capital to acquire coals from PT Marunda Graha Mineral and heavy equipment spare parts from PT Trakindo Utama and PT United Tractors Tbk (UNTR). (LK/ZH)