JAKARTA – PT Transcoal Pacific Tbk (TCPI) plans a Capital Increase Without Pre-emptive Rights, or private placement, of 500 million shares.

The management of TCPI will first ask for approval regarding this plan from its shareholders, in a meeting scheduled for January 6, 2025. The private placement will take place gradually, maximum 2 years since the approval was obtained.

For the record, the number of new shares issued by TCPI will be equal to 10% of its issued and paid-up capital. The new shares’ issuance will have portions of PT Sari Nusantara Gemilang diluted by 5%, PT Karya Permata Insani diluted by 2.27%, and public investors potentially diluted by 1.82%.

The management of TCPI mentioned that as of now, there has been no confirmed potential standby buyer for these issued shares.

Assuming that the exercise price is set to 90% of the average price of the past 25 days, which is IDR 6,288.3 per share, TCPI may rake in fresh funds of up to IDR 3.14 trillion from the corporate action. However, the company claims to have yet specified the proceeds’ allocation and utilisation. (KR/ZH)