PT Polysindo plans rights issue
PT Polysindo plans rights issue
JAKARTA (JP): The shareholders of PT Polysindo Eka Perkasa
yesterday approved the management's plan to issue 1.1 billion
shares through a limited offering to raise Rp 552 billion (US$235
million).
PT Bahana Securities is appointed as standby buyer to purchase
all unsold shares, up to a maximum of 317 million shares.
A director of Polysindo, R.A. Bratakusumah, said that existing
shareholders are eligible to buy as many new shares, at Rp 500,
as they have old ones. Therefore, the rights issue will double
the company's total number of outstanding shares to 2.2 billion.
Yesterday each old share was valued at Rp 5,500.
Bratakusumah said that 41 percent of the total proceeds will
be used to finance the establishment of a purified terephthalic
acid (PTA) plant, and to expand the production capacity of the
company's polyester chip unit in Karawang, West Java, and another
unit in Kendal, Central Java.
PTA is a raw material used in the production of polyester
chips.
"Another 44 percent will be used to strengthen our working
capital, while the remaining 15 percent is allocated for
equipment reconditioning at Kendal's unit," he added.
Bratakusumah said that the PTA plant will have a production
capacity of 340,000 tons per annum and start commercial
production at the end of this year.
He said the expansion projects will increase the company's
annual production capacity of polyester chips by 330,400 tons per
annum and the capacity of polyester fiber by 187,200 tons.
The company currently has three plants producing polyester
chips (with an annual capacity of 50,400 tons), polyester fiber
(7,200 tons) and polyester yarn (65,000 tons).
"The expansion is expected to start commercial production at
the end of this year," Bratakusmah said.
He said that Polysindo will sell all of its polyester fiber
and will consume part of its PTA and polyester chips to produce
polyester fiber and yarn.
Polysindo registered a 95 percent increase in net profits to
Rp 210 billion last year.
Net sales rose by 29 percent from Rp 749 billion in 1994 to Rp
970 billion last year. (alo)