Irvin Avriano A.
Indo Citra Finance stock trading suspended
JAKARTA: PT Indo Citra Finance Tbk shares transaction suspended by the stock market authority because of its strengthened in a significant numbers in 14 days.
"[The strengthened share's price happen] about IDR1,955 or 315.22% from IDR620 in the market closing on October 5th to IDR2,575 on October 19th," said (Daily Implementing) Transaction Monitoring Division Head of Indonesia Stock Exchange (IDX/PT Bursa Efek Indonesia) Irvan Susandy in an information disclosure yesterday.
He said the suspension will apply until the next announcement by the stock market authority. He also said the stakeholders should pay attention to every information that would be disclose either by the emitters or from the authority.
Indo Citra shares trading suspension happen after the company announce that they will held a rights issue action worth IDR3.6 trillion in a near time. They will issue the new shares with nominal value IDR500 and will sold with IDR2,500 per share.
With the fresh fund, the company planned to acquire stakes on Amstelco Plc. Amstelco is a British-based investment company that focused on oil and gas, natural resources, and mining. They business focused in Asia and commandeered by Didit Hadiatno.
The acquisition plan are tapped on Amstelco new shares that will be issued, and Indo Citra will buy with amount of 2o billion new shares or as much as 99.5% portion of the British company's new shares.
From the total amount of rights issue, Indo Citra will use IDR2.75 trillion of their fund for the acquisition. They also will use 23.48% of the fund to be working capital and for the issuance cost.
The rest of the fund or amounting 0.0278% of the fund will be used to acquire 99.99% PT Amstelco Energy Resources stake or amounted to IDR1 billion, and later will change their name into PT Amstelco Indonesia Tbk.
PT CIMB Securities Indonesia Analyst Mastono Ali view the plan was most likely a back door listing action. Back door listing is an attemp to listing in the stock market without held a public offering. Usually the action done by buying majority stake on an already listed company or acquiring a huge asset and need a substantial capital addition.
He also see the company's plans to enter the field of trade associated with mining for oil and gas sector is still very fair and still prospective.
"The business of mining still have a very good trend, where 2-3 year forward is still bullish, and that kind of sector is still able to sustain in the future economy. So the company are trying to look for cheap funds in the rights issue. "
He added the company plans to release more of its shares as much as 10% next year most likely in the form of warrants, not from rights issue either secondary offering.