CPI expects $26.18m from rights issue

JAKARTA (JP): PT Charoen Pokphand Indonesia (CPI), an animal feed producer listed on the Jakarta and Surabaya stock exchanges, expects to raise Rp 56.30 billion (US$26.18 million) from the sales of its rights shares next month.

Sudirto, the vice president of the company, said here yesterday that 70 percent of the funds to be raised from the limited public offering will partly finance the construction of a new animal feed factory in Sidoardjo, East Java. The other 30 percent will be used for strengthening the company's working capital structure.

He said that the planned factory, which is designed to produce around 350,000 tons per annum, is expected to increase the company's total animal feed production capacity to around 1.35 million tons.

At present, CPI produces one million tons of animal feed per annum at its four factories in Jakarta; Surabaya, East Java; Balaraja, West Java, and Medan, North Sumatra.

Sudirto said that the limited public offering will allow existing shareholders to buy one new share for each share they hold.

"CP Prima, the majority shareholder of the company, plans to fully use its rights to buy the new shares," Sudirto said.

In this way, the one-for-one rights issue will not affect the position of CP Prima's stock ownership in the company, which reaches around 55 percent at present.

CPI, which also produces woven polypropylene bags and poultry equipment, recorded total revenue of around Rp 521.39 billion (US$242.5 million) in the January-September period of this year, as compared to the Rp 548.32 billion recorded in the whole of 1993.

The company's net income was recorded at Rp 28.31 billion ($13.16 million) in the first nine months of 1994, almost reaching the level of Rp 28.71 booked in 1993. (hen)