Jakarta (TheInsiderStories) – Low cost flight carrier, PT AirAsia Indonesia Tbk (IDX: CMPP) plans to hold rights issue in December, 2019, and hope to raise funds Rp4 trillion (US$281.69 million), said the arrangers on Monday (08/26). PT Sinarmas Sekuritas together with PT Mirae Asset Sekuritas will lead the program.
The company holds the rights issue also to meet the free float policy and made it shares suspended. On August 5, Indonesia Stock Exchange (IDX) has temporarily suspended AirAsia Indonesia trading cause did not meet the number of outstanding public shares of 7.5 percent.
Based on the bourse data, currently public shares in AirAsia are only 1.59 percent. According to Sinarmas Sekuritas’ Director Kerry Rusli, the company will submit the disclosure information to Indonesia Stock Exchange in the next two weeks.
He added, the shareholders who do not exercise their rights, the shares will be diluted around 60 percent. While, AirAsia Indonesia’ spokeswoman Indah Permatasari Saugi stated, with this rights issue, the company also hopes that IDX will lift the suspension.
To date, AirAsia Indonesia‘ shareholders are Malaysia’ Air Asia Investment Ltd. with 49.25 percent and local firm, PT Fersindo Nusaperkasa with 49.16 percent. The rest is owned by the public and other parties.
Recently, the aviation company has issued US$80 million perpetual securities to its affiliated Malaysian AirAsia Berhad. He continued, the perpetual security issued in three stages, $30 million respectively on Dec. 31, 2018 and Jan. 31, 2019. Then $20 million on Feb. 28, 2019, for the last stage.
The interest rate determined for the perpetual securities is 2 percent a year. Afterwards, the company must pay 12 percent interest, consists of 8 percent distribution tariff and 5 percent step-up margin, for 7 years maturity.
The funding is used to shift company’ equity become positive and fulfill Indonesia’ Transportation Ministry requirement. In September 2018, AirAsia Indonesia’ equity was negative Rp598.23 billion amid the increasing of accumulated losses at around Rp6 trillion.
Therefore, Indonesia Stock Exchange gave special notation “CMPP.E” stated the negative equity listed company. Moreover, with negative equity, AirAsia Indonesia holds Rp4 trillion liability.
In 2017, the low cost flight carrier listed its share through a back-door listing through PT Rimau Multi Putra Pratama Tbk, an Indonesian-based engaged in trading coal (formerly known as PT Centris Multipersada Pratama Tbk). Its parent company and AirAsia Investment has executed to partially dispose and convert its perpetual securities investments in its Indonesian unit in CMPP.
The new shares has been issued amounted to 13.65 million shares at an exercise price of Rp250 per share. This means that the CMPP corporate value is worth Rp 3.41 trillion. Of these fresh funds, as much as 76 percent will be allocated to take over AirAsia Indonesia shares worth of Rp2.60 trillion.
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