JAKARTA. PT Fajar Surya Wasesa Tbk (FASW), a paper producer for packaging materials, will raise fresh funds through additional capital by providing pre-emptive rights (PMHMETD) or a rights issue.

The maximum number of shares to be issued by FASW is 1 billion shares. Each new share has a nominal value of IDR 500 per share, but the exercise price has not been announced.

FASW management will seek approval from its shareholders to carry out the rights issue. The agenda for the Extraordinary General Meeting of Shareholders (EGMS) is scheduled for January 22 2024.

In its official statement, FASW management also stated that the funds raised from the rights issue will later be used to reduce debt and improve the company's debt ratio. "It is [also] expected to increase the number of company shares on the market and increase the frequency of share trading," wrote FASW Management.

According to idnfinancials.com data, currently FASW's debt ratio is at the level of 2.09. As of September 30, 2024, FASW experienced a net loss of IDR 996 billion. Losses in this period were much higher compared to the 2023 financial year, which only reached IDR 626 billion.

FASW shares are currently under special monitoring on the Indonesian Stock Exchange (BEI). This follows the company's financial performance which has not improved, as well as the share of public investor ownership (free float) remaining only 0.29%. (KR/LM)