PT Plaza Indonesia Realty Tbk (IDX: PLIN) plans to increases its outstanding share via rights issue soon as part of stock exchange regulation - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian retailer, PT Plaza Indonesia Realty Tbk (IDX: PLIN) committed to have an outstanding share of 7.5 percent in the stock exchange, said the management today. The company needs to fulfill the obligation caused the number of shares at the local bourse only 4.23 percent.

Based on the official data, its parent, PT Plaza Indonesia Investama, owned 3.38 billion shares or 95.37 percent of paid up and enlarged capital. The issuer has asked blessing from its shareholders on March 20, 2020, to carry out the corporate action. This was announced by the company after the president director, Rosano Barrack, released all of its ownership, directly and indirectly, last month.

According to Exchange Regulation number IA regarding the listing of shares and other equity securities provided by listed companies. It said, the number of shares owned by controlling and non-controlling shareholders is at least 50 million shares and a minimum of 7.5 percent of all stocks.

Barack has sold 44.21 million shares of PLIN or equivalent to 1.24 percent of all issued and fully paid shares. The share sale was carried out at a price of Rp3,740 a unit or in total of Rp165.37 billion (US$11.17 million). Then, released 43.08 million shares or 1.21 percent directly owned by him and 1.13 million shares or 0.03 percent as indirect ownership by PT Rizki Bukit Abadi.

“We need to inform you, that Rosano Barack as the president director of Plaza Indonesia, cannot be calculated in the framework of fulfilling the Free Float Requirements,” wrote the management.

The reduction in public ownership happened last year, after PT Sinarmas Asset Management listed Simas Plaza Indonesia Real Estate Investment Fund (REIT) products on the Indonesia Stock Exchange with a total portfolio of Rp10.4 trillion. The underlying assets are 95.37 percent of the mall manager’ shares and 100 percent shares of PT Sarana Mitra Investama, which owns shares in PT Plaza Lifestyle Prima.

After the sale of Barrack’ shares, the ownership through this REITs increased to 96.61 percent. The total number of REITs participation units with the XSPI code is 20.80 billion units and have a yield of 6 – 8 percent per year.

REIT is an investment instrument in the form of a collection of investor funds that will be invested in property assets either directly by buying buildings or indirectly by buying shares or bonds from property companies. This instrument has an obligation to invest a minimum of 80 percent of the funds under management in the property, of which 50 percent must be in the form of direct real estate assets.

US$1: Rp14,800

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