CPI expects $26.18m from rights issue<\/p>\n
JAKARTA (JP): PT Charoen Pokphand Indonesia (CPI), an animal
\nfeed producer listed on the Jakarta and Surabaya stock exchanges,
\nexpects to raise Rp 56.30 billion (US$26.18 million) from the
\nsales of its rights shares next month.<\/p>\n
Sudirto, the vice president of the company, said here
\nyesterday that 70 percent of the funds to be raised from the
\nlimited public offering will partly finance the construction of a
\nnew animal feed factory in Sidoardjo, East Java. The other 30
\npercent will be used for strengthening the company's working
\ncapital structure.<\/p>\n
He said that the planned factory, which is designed to produce
\naround 350,000 tons per annum, is expected to increase the
\ncompany's total animal feed production capacity to around 1.35
\nmillion tons.<\/p>\n
At present, CPI produces one million tons of animal feed per
\nannum at its four factories in Jakarta; Surabaya, East Java;
\nBalaraja, West Java, and Medan, North Sumatra.<\/p>\n
Sudirto said that the limited public offering will allow
\nexisting shareholders to buy one new share for each share they
\nhold.<\/p>\n
\"CP Prima, the majority shareholder of the company, plans to
\nfully use its rights to buy the new shares,\" Sudirto said.<\/p>\n
In this way, the one-for-one rights issue will not affect the
\nposition of CP Prima's stock ownership in the company, which
\nreaches around 55 percent at present.<\/p>\n
CPI, which also produces woven polypropylene bags and poultry
\nequipment, recorded total revenue of around Rp 521.39 billion
\n(US$242.5 million) in the January-September period of this year,
\nas compared to the Rp 548.32 billion recorded in the whole of
\n1993.<\/p>\n
The company's net income was recorded at Rp 28.31 billion
\n($13.16 million) in the first nine months of 1994, almost
\nreaching the level of Rp 28.71 booked in 1993. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpi-expects-2618m-from-rights-issue-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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