JAKARTA (TheInsiderStories) — Indonesian gold miner, PT J Resources Asia Pasifik Tbk (IDX: PSAB) will issue 2.64 billion new shares through private placement, said the spokesman Edi Permadi on Friday (01/18). The share issuance is equal to 9.09 percent of company’s capital.
Company will hold extraordinary shareholders meeting on Feb. 26 for the planned. But, the planned it will most probably stumble with Indonesia Stock Exchange regulation about minimum free-float shares.
Recently, J Resources’ public shares is 7.5 percent and after the private placement will be diluted to 6.82 percent. The current regulation obliges listed-company to have minimum 7.5 percent public shares.
J Resources shares has been moving around Rp184 to Rp218 during December 2018. Its estimated that the capital addition plan without providing previous security order rights price, may gain around Rp575.52 billion (US$40.81 million) fresh funding.
According to Permadi, the private placement funding will be used to strengthen company’s capital structure. With a rough calculation, the corporate action will rocket J Resources cash for almost three times from $24.83 million to $61.74 million. Then, its assets and equity will rise respectively by around four percent and 10 percent.
J Resources could not pan profit last year. In the third quarter of 2018 financial statement, its profit slumped by 33.77 percent to $6.96 million. While the revenue decreased by 6.16 percent to $153.9 million.
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