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Monday, May 16, 2011

Chandra Petrochemical surged after low rights issue price

16/5/2011
Irvin Avriano A.

Chandra Petrochemical surged after low rights issue price

JAKARTA: PT Chandra Asri Petrochemical Tbk 827.87 mio sheet rights issue plan suppress their shares price to IDR4,600 this afternoon, corrects IDR25 price or equivalent to 0.54%.

Based on their prospectus published in newspaper today, the IDR1.9 trillion--3.6 trio rights issue plan indicated already formed its range price on the market related to non premium offered to capital market investors on the event.

The offered price for the rights issue is IDR2,300 to IDR3,450 per sheet for as much as 827.87 mio shares, while the company's shares price pegged at IDR4,625 last weekend.

The Prajogo Pangestu Group company also have appoint PT DBS Vickers Securities Indonesia, PT Morgan Stanley Asia Indonesia, Deutsche Bank AG Hong Kong branch, and UBS AG Singapore branch as standby buyers.

Chandra Petrochemical's shareholders namely PT Barito Pacific Tbk, Apleton Investment Ltd, and Marigold Resources Pte Ltd as their majority and/or affiliated shareholders already sell their all rights to standby buyers, based on May 13th agreement, and will distribute to their clients in domestic market and in foreign countries.

Barito now own 66.47% portion in Chandra Petrochemical, Appleton Investment 22.87%, Marigold Resource 5.52%, and public 5.14%. If the shareholders won't execute their rights, their ownership to the company which shares coded TPIA portion will reduce up to 21.3%.

Chandra Petrochemical is a company result from merger of PT Tri Polyta Indonesia Tbk and PT Chandra Asri last year. Chandra Petrochemical have three subsidiary, namely PT Styrindo Mono Indonesia, PT Petrokimia Butadiene Indonesia, and Altus Capital Pte Ltd.

Through Altus Capital, Chandra Petrochemical already issue 12.875% senior dollar bond worth US$230 mio that will matured on February 10th 2015. The bond pocketed both B+ and B2 rating from Standard & Poor's and Moody's Investors Service. The company already gathered approval from its 91% bondholder to reduce its escrow account, and pay 'several amount' sweetener to the investor which agree to the solicitation act.

The company intend to use 90% of money gathered in the rights issue to funding its capital expenditure needs to accelerate debottlenecking plan, and to expand facilities. While the 10% rest will use to the company's common needs.

Previously, the company already expressed their interest to held rights issue on March, on a media gathering event in a seafood restaurant located in Menara BRI, to funding midterm needs that stand at US$400 mio.

The majority needs came from US$300 mio needs to expand polyethilene production capacity until 2014 as much as 600,000 tonnes from previously 400,000 tonnes to 1 mio tonnes per year.

The company set the cum rights date on June 28th for cash market and June 23th for negotiation and regular market. The distribution date for rights will set on June 30th.

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