Indonesia's PT Verena Multi Finance Tbk plans to raise 434.30 billion rupiah in a stock rights issue, IDNFinancials reported Oct. 18, citing a prospectus issued by the company.

Under the proposed rights issue, the auto finance company plans to issue 3,102,193,089 shares to its existing shareholders at 140 rupiah apiece. A shareholder holding 100 shares of the company is entitled to buy 120 new shares with Dec. 6 set as the entitlement date, according to the report.

The company's major shareholder PT Bank Pan Indonesia Tbk and Murniaty Santoso will not participate in the rights issue and will transfer their rights to Japan's IBJ Leasing Co. Ltd., which is seeking to purchase a majority stake in the company.

Verena Multi Finance plans to use a part of the funds from the rights issue to acquire an 80% stake in joint venture PT IBJ Verena Finance from IBJ Leasing and the rest for working capital.

As of Oct. 18, US$1 was equivalent to 15,207.00 Indonesian rupiah.