Jaya Ancol Cancels Rights Issue on Market Concern - The Indonesia Today

PT Pembangunan Jaya Ancol Tbk (PJAA) has decided to cancel its rights issue plan given the current fluctuated market condition, detikfinance.com reported.

The rights issue was as planned scheduled for the first quarter of this year.

Budi Karya Sumadi, PJAA's president director, said the company may again launch the rights issue in next two years to raise proceeds of Rp200 billion.

The company earlier said the rights issue proceeds aims to have interest or capital placement in Cilincing-Ancol toll road development, develop new facility for recreation, IT development and upgrade the existing facilities.

"As we have canceled rights issue, the capital placement in the toll road projects will be funded by the company's internal cash and bank loans," Budi said.

He added the company targets to book revenue of Rp1.1 trillion this year, higher than Rp944 billion it booked last year. The company also targets net profit of Rp155 billion this year, Budi said.

It booked net profit of Rp142 billion in 2010, increased 3.2% from Rp137 billion in 2009. The visitors to Ancol is expected to reach 14.3 million people by end of December of 2011.