JAKARTA (TheInsiderStories) – Sinar Mas Group’ listed mining company, PT Golden Energy Mines Tbk (IDX: GEMS) offers as many as 588.24 million new shares or 10 percent of paid up capital, it said today (06/07). This step was taken to fulfill the obligation to increase free float shares in the capital market.
According to Indonesian Stock Exchange policy, public listed firm must have a public ownerships at least 7.5 percent or around 50 million shares. Because does not meet the rules, the authority has suspended the company’ shares since January 2018. At present, the majority of the company owned by Resources Limited 66.99 percent, GMR Coal Resources Pte. Ltd., 30 percent, and public 3.01 percent.
Golden Energy Mines has received a warning from the IDX and is threatened with delisting because the number of shares of the company circulating in the public is less than the regulation. The exchange authority gave the company a deadline of 31 October 2020 to increase its ownership in the market.
The company has not yet decided on the price for implementing the rights issue. However, assuming the price of shares at the level of Rp 2,550 per share, the estimated rights proceeds will be around Rp1.5 trillion. The funds is expected to strengthen the miner’ capital structure and will invites local and foreign investors to invest in the company.
“After the rights issue, the company’ shareholders who do not exercise their rights to preempt the shares, the percentage of total share ownership will be diluted by a maximum of 9 percent,” the company said in its official statement today.
Last June, the coal producer only received an additional working capital credit facility of US $ 29.50 million or around Rp416.46 billion from PT Bank Mandiri Tbk (IDX: BMRI) for its subsidiary, PT Borneo Indobara, PT Kuansing Inti Makmur and PT Barasentosa Lestari. Management confirms the proceeds from the working capital loan will be used to strengthen and improve the company’s operational performance.
Golden Energy is engaged in the business of trading sector of mining products and services. On March 13, 1997 the company was established under the name of PT Bumi Kencana Eka Sakti, which was later changed to Golden Energy Mines on Nov. 16, 2010.
On Nov. 12, 2011, the miner became a public company and was listed on the main board of IDX. Through the Initial Public Offering (IPO), the unit of Sinar Mas Group was able to collect funds amounting to Rp2.21 trillion.
In that IPO, GMR Coal Resources, which is a subsidiary of the GMR Group, a leading infrastructure business group in India, became the company’s strategic investor by having 30 percent shares of the total issued and paid-up capital by the company.
On April 20, 2015, a power producer, PT Dian Swastatika Sentosa Tbk (IDX: DSSA) has transferred 66,9998 percent of its share to Golden Energy and Resources Limited, a domiciled company in Singapore. The company is engaged in exploration, mining, and marketing of coal and owns forestry concession rights in South Kalimantan.
Last year, the publicly listed firm posted a net profit of US$65.41 million or dropped 34 percent from the previous year of $98.77 million.
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