CSIS Announces Major Rights Issue to Fund Industrial Development

Key Details of the Rights Issue

PT Cahayasakti Investindo Sukses Tbk (CSIS) is set to conduct a significant rights issue, offering up to 522.8 million new shares at Rp 380 per share. This corporate action represents 28.57% of the company's current paid-up capital and is expected to raise a maximum of Rp 198.66 billion. The rights issue has garnered interest from two major standby buyers: PT Andalan Utama Bintara (AUB) and PT Olympic Kapital Equity (OKE).

Strategic Use of Funds

The majority of the funds raised will be directed towards the development of the Cikembar Industrial Estate, a project managed by CSIS's subsidiary, PT Bogorindo Cemerlang. This investment aligns with CSIS's growth strategy and demonstrates the company's commitment to expanding its industrial real estate portfolio.

Market Context and Implications

The rights issue comes at a time when several Indonesian companies are engaging in similar capital-raising activities as the year-end approaches. This trend reflects both the ongoing need for corporate funding and investor confidence in Indonesia's growth prospects. The success of CSIS's rights issue will depend on various factors, including market conditions and investor appetite for new shares.