The shares of the issuer of the garment and textile producer, namely PT Pan Brothers Tbk (PBRX), were observed to have sunk and almost touched the lower auto reject (ARB) in trading session I Wednesday (25/1/2023), in the midst of the PBRX rights issue period. As of 10:13 WIB, PBRX shares had fallen 4.92% to Rp 58/share. PBRX shares almost touched their ARB limit this morning. PBRX shares have been traded 6,276 times with a volume of 624.94 million shares and the transaction value has reached IDR 36.08 billion. From the price to earnings ratio (PER), PBRX shares are currently at 1.51 times. The market capitalization reaches IDR 376 billion.

As of 10:13 WIB, there were 192,887 lots queued to sell at the order offer at a price of IDR 58/share. Meanwhile, in bid or buy orders, there are 1.38 million lots queuing at a price of IDR 57/share. But in that position, it becomes the lower limit which indicates that PBRX shares are almost touching ARB.

If you count today, then PBRX shares have sunk and touched ARB for 4 consecutive days. Meanwhile, PBRX shares have started to touch ARB since last January 19, so the share price has fallen by 15.94%.

Currently, PBRX's rights issue or Pre-emptive Rights (HMETD) period is still ongoing, where the PBRX rights issue trading period takes place on January 19-26 and the final redemption date for PBRX's rights issue will be held on Thursday tomorrow.

Meanwhile, the payment period for additional shares will be held on January 30, 2023 and the allotment period will be carried out on January 31, 2023. The distribution period for additional shares will be on February 1, 2023 and the payment and taking of the remaining shares by standby buyers will be on February 1, 2023.

Previously, in PBRX's brief prospectus, the funds obtained from PMHMETD IV after deducting all related costs would be used for working capital to support Pan Brothers' business development in the form of increasing sales.

This working capital includes raw material costs of around 80% of the funds obtained by PBRX in the form of purchasing high quality fabrics that meet the buyer's specifications.

PBRX will also use 15% of the rights issue funds for production and maintenance costs including labor wages, energy costs, including maintenance of production facilities. While the remaining 5% is used for operational and marketing costs.

Of course, this corporate action has received an effective statement from the Financial Services Authority (OJK) on 5 January 2023 and has also been approved at the Extraordinary General Meeting of Shareholders (EGMS) on 15 September 2022.