Chandra Asri Owned By Conglomerate Prajogo Pangestu Rights Issue Rp15.5 Trillion: Thai Company Officially Becomes One Of The Largest Shareholders

Chandra Asri Petrochemichal Factory. (Photo: Doc. Chandra Asri)

JAKARTA - The petrochemical company, PT Chandra Asri Petrochemical Tbk (TPIA) stated that it has completed the Limited Public Offering III which has obtained an effective statement from the Financial Services Authority (OJK).

All of the new shares issued have been fully paid up and the company, owned by the conglomerate Prajogo Pangestu, has added capital of Rp15.5 trillion or US$1.1 billion. This rights issue is the largest in the Indonesia Stock Exchange (IDX).

After the rights issue, the number of outstanding shares of TPIA increased by 3,794,366,013 shares (from 17,833,520,260 to 21,627,886,273 shares). The composition of public shares is around 8.2 percent, fulfilling the requirements for public shares (free-float) from the IDX.

The standby buyer that supports the success of the transaction is PT TOP Investment Indonesia, a subsidiary of Thai Oil Public Company Limited (Thaioil), the flagship refinery of PTT Public Company Limited (PTT).

Previously in July 2021, Chandra Asri had announced the selection of Thaioil as his chosen partner to support the development of the second petrochemical complex (CAP2), through a strong and comprehensive strategic investor selection process.

The net proceeds will be used for the development and construction of the second integrated petrochemical complex on a global scale by subsidiary PT Chandra Asri Perkasa which will include cracker units, polymerized olefins and related facilities and utilities.

This is in line with Chandra Asri's strategy to expand production capacity and business scale to serve the needs of the Indonesian market. Chandra Asri's Director of Human Resources and Corporate Affairs, Suryandi said that his party welcomes Thai Oil as the new major shareholder of TPIA.

"The financing raised provides us with a strong equity foundation to continue the Company's plans to develop a second petrochemical complex as soon as possible. We are grateful for the continued support from shareholders, investors, regulators and other key stakeholders to make this transaction successful and extraordinary," he said in a press release, quoted Wednesday, September 15.

With the successful implementation of the rights issue process and equity injection, Thai Oil now holds a 15 percent stake in Chandra Asri, and is a major shareholder and sponsor of Chandra Asri with Barito Pacific and SCG Chemicals.