TOP Falls 8% amid Concerns over the Cost of Investment in Indonesia’s Petrochem Producer
The share price of TOP fell 8% to Bt43.25 in concerns of the cost in investing in Indonesia's largest integrated petrochemical producer.
The share price of TOP fell 8% to Bt43.25 in concerns of the cost in investing in Indonesia's largest integrated petrochemical producer.
30 ก.ค. 2564

The share price of Thai Oil Public Company Limited (TOP) fell ฿3.75/share or 7.98% to ฿43.25/share with a trading value of 2,444 million baht in the morning session on July 30, 2021.
The plummet came after the announcement of a 39,116 million baht investment on Indonesia’s largest integrated petrochemical producer that investors are worried of the capital increase and the budget to utilize in this investment that the company is expecting to borrow from PTT Public Company Limited (PTT) and sell its shares in GPSC.
 
TOP announced last night that the company’s direct investment (through right offering) in PT Chandra Asri Petrochemical Tbk (CAP), which is the premier petrochemical producer with an integrated plant incorporating world class, state of-the-art technology and supporting facilities in the Republic of Indonesia, the ASEAN’s largest and high-growth chemicals market. It operates the country’s only naphtha cracker producing high quality olefins and polyolefins and is the sole domestic producer of styrene monomer and butadiene.
The investment will be made through a newly established subsidiary company (the Newly Established Subsidiary Company), up to 15.38 percent of CAP’s total shares (the Share Acquisition Transaction), where the investment proceeds to CAP will be exclusively used for the investment in the development and construction of a petrochemical plant by PT Chandra Asri Perkasa (CAP2), a wholly-owned subsidiary of CAP.
CAP’s major shareholders, PT Barito Pacific Tbk, Marigold Resources Pte. Ltd., and Pak Prajogo Pangestu (jointly the Barito Group) and SCG Chemicals Co., Ltd., fully support CAP’s rights issue and the development and construction of a petrochemical plant of CAP2.
 
The Share Acquisition Transaction will not exceed USD 1,183 million or approximately THB 39,116 million (33.0652 Thai Baht to 1 US Dollar).
TOP expected the Right Offering to be completed before September 30, 2021.