{
    "success": true,
    "data": {
        "id": 2001322,
        "msgid": "rights-issues-surge-as-issuers-target-fresh-funds-for-expansion-and-acquisitions-1790311881",
        "date": "2026-09-25 08:55:04",
        "title": "Rights Issues Surge as Issuers Target Fresh Funds for Expansion and Acquisitions",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Finance",
        "summary": "A wave of rights issues is sweeping through Indonesian listed companies as issuers seek capital to fund strategic acquisitions and infrastructure development. Notable examples include PT Ultrajaya Milk Industry's plan to acquire Frisian Flag Indonesia and PT DMS Propertindo's pursuit of property acquisitions.",
        "content": "<p>A number of issuers are once again utilising Pre-emptive Rights\n(Rights Issue) to support their business agendas. The funds raised from\nthese corporate actions are being directed towards expansion,\nacquisitions, and infrastructure development.<\/p>\n<p>One of the issuers preparing a rights issue is PT Ultrajaya Milk\nIndustry &amp; Trading Company Tbk (ULTJ). The company plans to issue a\nmaximum of 7.878 billion new shares at an execution price of Rp2,150 per\nshare. Through this action, ULTJ has the potential to raise fresh funds\nof up to Rp16.94 trillion.<\/p>\n<p>Approximately 86.01% of the rights issue proceeds will be used by\nULTJ to take over 100% of Frisian Flag Indonesia through an inbreng\n(contribution in kind) scheme. This transaction would make\nFrieslandCampina International Holding the new controlling shareholder\nof ULTJ.<\/p>\n<p>A similar scheme is being pursued by PT DMS Propertindo Tbk (KOTA),\nwhich is using its rights issue as a funding source for acquisitions.\nKOTA is preparing a maximum of 100 billion new shares and targets funds\nof approximately Rp4.95 trillion.<\/p>\n<p>About Rp4.4 trillion of the rights issue proceeds will be used by\nKOTA to purchase 99.99% of the shares in PT Art Design Indonesia and PT\nMandirinusa Graha Perkasa. Meanwhile, the remaining funds will be used\nfor working capital, operations, and business development.<\/p>\n<p>Additionally, approximately Rp668.61 billion of MGLV\u2019s funds will be\nused to acquire receivables, while around Rp1.6 trillion will be\nallocated as capital to two of its business entities for the development\nof data centre facilities in Cikarang and Batang.<\/p>\n<p><strong>Rights Issue Prospects<\/strong><\/p>\n<p>Elandry Pratama, Analyst and Branch Manager at Panin Sekuritas Pondok\nIndah, explained that a rights issue serves as an alternative funding\nmethod when the cost of capital is high, as companies can obtain\nadditional equity without increasing interest burdens.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/rights-issues-surge-as-issuers-target-fresh-funds-for-expansion-and-acquisitions-1790311881",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}