Tjiwi Kimia Rights Issue IDR1.3trn

Pabrik Kertas Tjiwi Kimia (TKIM IJ, NR) is planning to issue 1.33bn new shares (50%) through rights issue. The company is targeting IDR1.33trn of fresh fund or equivalent to ~IDR1,000/share. The fund will be used for its subsidiary, PT Oki Pulp & Paper Mills, to finance the development of pulp & paper factory with estimated capacity of 2 mn tons per annum in South Sumatera. The total investment for the factory is approximately US$2.63bn.