JAKARTA. PT Medco Energi Internasional Tbk (MEDC) would issue new shares with pre-emptive rights, or conducting a rights issue, worth IDR 6.94 trillion.
Through the rights issue, the company plans to offer new shares of 12,500,000,000 units at most, valuing at IDR 25 per share. The execution price is yet to be announced. However, if referring to the lowest share price within the last three months, which falls at IDR 555, the potential return would reach IDR 6..94 trillion.
In a short prospectus published in Indonesia Stock Exchange, quoted today (21/7), the management claims that the collected funds would be used in the company or its subsidiaries’ capital expenditures. It then includes the acquisition of other companies aligning with the current business that MEDC and its subsidiaries are focused on.
The proceeds would also be spent on paying off several debts. For the said actions, MEDC would have to ask for approval during the Annual General Shareholders Meeting on August 26, 2021. (AM/ZH)