KAEF Seeks to Raise Rp 3 Trillion from Rights Issue

By Editorial Team 20/09/2019
Summary

State-owned pharmaceutical company PT Kimia Farma Tbk, through an extraordinary general meeting of its shareholders on Wednesday (9/18), received approval to sell 1.5 billion new shares in a rights issue. The number of new shares from this KAEF-coded company is equivalent to 22.14 percent of the issued and fully paid-in capital. Currently, Kimia Farma is still reviewing the price of the new shares, but it hopes to raise around Rp 3 trillion from the rights issue.

The government that has a 90.03 percent stake in KAEF will not take the new shares. Thus, its share ownership will be reduced. However, the government is likely to use PT Bio Farma to absorb the new KAEF’s shares. Understandably, the government is overseeing the establishment of a state-owned pharmaceutical holding and has set Bio Farma as the parent company.

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