MAIN’s share issuance to support capex

Malindo Feedmill (MAIN, BUY, TP: Rp3,800) will issue 69 million new shares (5.7%) through private placement on 21 April 2014. The new shares will be issued at Rp3,500/share with Ginger Company Limited and Peak Team Company Limited as the buyers. MAIN will use the fund to support this year’s capex of Rp500 billion which will be used to build feedmills in Semarang & Makassar as well as developing more DOC breeding facilities.