JAKARTA (Yosefardi) – Facing amounting complaints from individual investors, PT BW Plantations reportedly reviews its ratio of the planned rights issue, from initial 1:6 (1 old shares to get 6 new shares) to 1:3. Bisnis Indonesia reported this morning that institutional investors also complain.
Individual investors represented by the Indonesian Securities Investors Society (Missi) have for second time on Tuesday (October 14) sent letter to the Financial Services Authority (OJK) complaining about the exercise prices of BWPT new shares which results in 65% loss suffered by public investors, otherwise new investors or buyers would gain 60% discount on price.
Missi also complains about BW Investindo’s decision to not exercise its right to buy BWPT new shares.
Kelik Irwantono, BWPT’s corporate secretary, said BW Investindo and Rajawali Group have made a deal on BWPT rights issue program. The agreement, he said, could not be disclosed.
Adam Jaya Putra, general manager for investment at PT Rajawali Corpora explains that BW Investindo decided not to exercise its rights to buy BWPT new shares due to poor funding capacity.
BWPT plans to issue 27.02 billion new shares, priced at Rp390-411per share, to raise total proceeds of maximum Rp11.1 trillion. BW Investindo now holds 33.81% BWPT shares. After the rights issue, BW Investindo would only hold 4.98% BWPT shares.
At 10.07 am Jakarta time, BWPT gained 0.88% to Rp570 per share with over 34 million shares exchanged hands.