PT Communication Cable System Tbk (CCSI) plans to increase capital through pre-emptive rights or rights issues. The company plans to rights issue of new shares amounting to 170 million  shares or 17% of the total paid-up capital. Communication Cable sets a nominal price for the rights issue at Rp100 per share.

"The implementation price will be stated in the next prospectus," said the company's management in the disclosure of information on the Indonesia Stock Exchange (IDX) in Jakarta, Tuesday (23/3).

According to Communication Cable's management, they will implement the rights issue no later than the end of semester I-2021. They are waiting for the Financial Services Authority's effective statement (OJK) and seeking the approval of the extraordinary general meeting of shareholders (EGMS), held on April 29, 2021.

Management of Communication Cable hopes that this corporate action can invite investors, both local and foreign, to invest their company funds. Shareholders who do not exercise the rights will have their shareholdings diluted by 14.53%.

"The funds obtained from the rights issue will fully be used for the company's working capital," said the company management.

Communication Cable revealed, until June 2020, the company had used the proceeds from the initial public offering (IPO) of shares worth IDR10.06 billion. As a result, the remaining unused IPO funds reached Rp35.47 billion.

According to Communication Cable management, of the Rp.10.06 billion funds, Rp9.76 billion was used to develop the fiber optic (FO) cable project. The remaining Rp295.34 million was used for the operation of the FO submarine project.

Communication Cable's total IPO funds reached IDR 50 billion.

"The company uses Rp4.46 billion of which for public offering costs so that the net funds received reach Rp45.53 billion," said the company.