Jakarta. Indonesian textile materials trader Evergreen Invesco said it plans to sell 50 billion new shares in May in an equity rights issue whose proceeds will be used to develop its units and pay back some loans.
In a stock exchange filing on Monday (06/03), Evergreen said the rights issue was subject to approval by shareholders and the Financial Services Authority (OJK). It did not say how much it hoped to raise from the rights issue.
The company had planned a rights issue last year too. Evergreen first said in September last year that it was seeking Rp 30 trillion ($2.25 billion) from a sale of 150 billion new shares. It then lifted that to 40 trillion rupiah before cutting it in December to Rp 10.3 trillion.
The company had previously said it would use funds raised from a planned rights issue to acquire a holding company set up by Bumiputera, a troubled century-old life insurer.
Evergreen then scrapped the rights issue plan, an OJK-appointed statutory manager for Bumiputera Didi Achdijat said last year, adding that Bumiputera would issue promissory notes instead.
Evergreen's current biggest shareholder is Natural Crystal Holding, which owns 53.26 percent of the firm. First Venture Limited holds a further 6.22 percent stake, with the remainder publicly traded.