The cleansing notice tell us how many new shares were issued, ie shareholders who took cash and did not participate in the DRP @ 75 cents/share or top-up by buying shares from the market @ approx 65cents/share had their shares diluted. Quoting the DRP announcement:"The Company’s three largest shareholders, Shanghai Decent Investment (Group) Co Ltd, PT Danusa Tambang Nusantara (United Tractors) and PT Karunia Bara Perkasa (Harum Energy), along with the Company’s Executive Directors, combining for more than 54% of issued shares, have all agreed to participate in the DRP." The cleansing notice shows:
Total no of shares before DRP
4,289,809,880
1
New issued DRP shares
50,125,995
2
Dividend @ $0.015
$37,594,496
3
Shares participitating in DRP
2,506,299,750
4
Total no of shares after DRP
4,339,935,875
5
% of shares participating in DRP
58.4%
This is reassuring as 58.4% participated compared to the announced 54% when the DRP price is much higher than the market price. Show the participants confidence in the share price.
The dilution of shares is 50125995 / 4289809880 = 1.17%
NIC Price at posting:
62.0¢ Sentiment: None Disclosure: Held
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