Textile issuer PT Pan Brothers Tbk. (PBRX) has completed the action to increase capital with preemptive rights (PMHMETD) IV or rights issue. PBRX reports that the demand for shares exceeds the supply. PBRX was recorded as offering 15 billion ordinary shares with a nominal value of IDR 25 which is equivalent to 69.84 percent of the issued and fully paid capital after PMHMETD IV. With an offering price of IDR 50, the total funds collected by PBRX from this corporate action reached IDR 750.18 billion. In this rights issue, each holder of 250 shares whose name is recorded in the PBRX shareholder register (DPS) on the recording date of January 17 2023 will receive rights to 579 Preemptive Rights.

As for PT Trisetijo Manunggal Utama as the controlling shareholder, he has taken part of the HMETD which he is entitled to as many as 4.19 billion shares at a price of IDR 50. Thus, Trisetijo is expected to spend Rp 209 billion to redeem its rights issue rights.

"Likewise, other shareholders who took part in HMETD rights totaling 14.88 billion shares," wrote Pan Brothers management, Wednesday (8/2/2023).

Management explained that requests for additional shares reached 3.09 billion shares, which exceeded 13.2 percent of the number of available offerings or was equivalent to 1.97 billion shares.

"The total shares after PMHMETD IV was implemented became 21,482,028,246 shares," continued PBRX. PBRX stock chart by TradingView After the rights issue, PT Trisetijo Manunggal Utama as controller narrows down 31.25 percent of PBRX shares.

Meanwhile, the company owned by the nephew of conglomerate Martua Sitorus, Darwin Indigo, namely Burlingham International Ltd. owns 18 percent of PBRX shares. As is known, Darwin holds 33 percent of Burlingham shares, while the remaining 67 percent is owned by Martua Sitorus.

Referring to PBRX's short prospectus information, the funds obtained by the company from the rights issue after deducting all costs related to PMHMETD IV will be used for working capital, namely to support the company's business development in the form of increased sales, including the cost of raw materials.

Approximately 80 percent of the funds obtained, in the form of purchasing high-quality fabrics that meet the specifications of the buyer. Then 15 percent is used for production and maintenance costs which include labor wages, energy costs, including maintenance of production facilities, and others.

Then about 5 percent is intended for operational and marketing costs. If the funds have not been used, they will be placed in bank deposit products.