JAKARTA (TheInsiderStories)–Indonesia’s publicly listed retail company PT Matahari Putra Prima Tbk (IDX: MPPA) eyes Rp806.69 billion (US$56 million) through right issue.
Citing the information disclosure of IDX on Monday (02/07), the company increased the number of offered shares to 2.15 billion shares, equivalent to 28.57% of the issued and fully paid share capital of Rp50 per share. The implementation price is set at Rp375 per share, so through the right issue, Matahari Putra Prima will get a fresh fund of Rp 806.69 billion.
The company plans to use the 93.7 per cent of the right issue proceeds for the working capital, while the remaining 6.3 per cent will be used to pay the part of company’s debt to Bank of China Limited.
The right issue will be traded in the IDX and outside IDX for 10 days from July 12, 2018 to July 13, 2018; from July 16, 2018 to July 20, 2018; and from July 23, 2018 to July 25, 2018. BEI will be done the listing on July 12, 2018. The final date of the right issue is July 25, 2018.
Matahari Putra Prima booked Rp159.8 billion in net loss in the first quarter this year, slightly better from Rp176.7 million in the first quarter last year. The company suffered Rp1.2 trillion in net loss throughout last year, eventhough it recorded a profit of Rp38.48 billion in 2016.
The firm booked Rp2.9 trillion in revenue in the first quarter of this year, significantly low from Rp3.1 trillion in the first quarter last year. The company recorded 7.14 per cent down to Rp12.56 trillion in 2017 (year on year), the lowest in the last four years.
The company blamed the emergence of online shopping and tight competition with minimarket operators as the main cause of its poor financial performance. In addition to those external factors, the declining profit also triggered by the increase of cost of goods to Rp11.56 trillion or an rise of 2.82 per cent in 2017 (year on year). Sales expenses also jumped 67.7 percent to Rp 489.6 billion. The general and administrative expenses also increased by 4.69% to Rp 2.06 trillion and the financial burden increased by 29.78% to Rp 118 billion from the previous year.
The Matahari Putra Prima’s shareholders by January 31, 2018 consists of DBS Bank Ltd S/A PT multipolar Tbk. 24.14 per cent, PT Multipolar Tbk. 26,09%, DBS Bank Ltd. SA Prime Star Investment Pte. Ltd. 26,09% dan publics 23,68%.
Matahari Putra Prima is a retail store management company of Hypermart, Foodmart, Smart Club, and Boston Health and Beauty. In 2017, the company’s total outlets are located in 259 locations while in 2016 the company’s total outlets are in 299 locations.