Indonesia’s Medco Lowering Private Placement’s Target to US$106M

JAKARTA (TheInsiderStories) – Indonesian oil and gas producer, PT Medco Energi International Tbk (IDX: MEDC) reduce its private placement targets from Rp2.31 trillion to Rp1.53 trillion (US$106.07 million) in the midst of high market turmoil. The approval from the shareholders its expecting on Nov. 15, 2018.

In the public announcement released on Wednesday (10/10), the company said has lowered the offering price from initially at Rp1,306 to Rp868 a share. Medco plans to releasing as much as 1.772 billion new shares or 10 percent of paid-in capital through the private placement.

It said, the purpose of the private placement is to get additional funds to strengthen the capital structure and increase the company’s equity.

Referring to the financial report in first half (1H) of 2018, MEDC’s total cash and cash equivalents increased 29.23 percent to $448.09 million from the previous $346.73 million. Meanwhile, the company’s equity as of June 2018 after the private placement could rise 7.23% to US $ 1.5 billion from the previous US $ 1.4 billion.

Assuming all shares have been issued in the framework, the company’s shareholder ownership will be diluted to a maximum of 9.06 percent. After the rights issue, the ownership of existing shareholder PT Medco Daya Abadi Lestari will diluted to 45.79 percent from 50.35 percent, Diamond Bridge Pte. Ltd., down to 19.58 percent from 21.53 percent, and public ownership after the private placement decreased to 25.02 percent from the previous 27.51 percent.

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