Bakrie & Brothers (BNBR) Plans Major Rights Issue, Funds to be Used For This

Bakrie & Brothers (BNBR) Plans Major Rights Issue, Funds to be Used For This

Jakarta, CNBC Indonesia - Bakrie & Brothers (BNBR), the holding company of the Bakrie Group, plans to conduct a rights issue.

According to information disclosed on the Indonesia Stock Exchange (IDX), the rights issue will be approved at an extraordinary general meeting of shareholders on 27 February 2026. The proceeds from the issuance of new shares, valued at Rp12 per share, will be used to pay off the company’s and its subsidiaries’ obligations, as well as to support working capital and business development, including the optimisation of assets of PT Cimanggis Cibitung Tollways.

Management stated that the rights issue is necessary to improve the company’s capital structure following the acquisition of strategic assets.

“After this action, the debt-to-total assets ratio is projected to decrease from 84.28% to 67.9%, while the debt-to-equity ratio will decrease significantly from 536.02% to 211.57%,” BNBR management wrote in the disclosure.

Although this action will strengthen the balance sheet, it has attracted the attention of investors because the number of outstanding shares will increase significantly. The company reminded shareholders that those who do not exercise their rights in the rights issue may experience a dilution of ownership of up to 33.33% after the rights issue is completed.

The final details regarding the offering price and the number of shares to be issued will be determined in the prospectus after the registration statement is declared effective by the Financial Services Authority (OJK). The company plans to issue up to 90 billion new Series E shares. This corporate action has the potential to cause a dilution of ownership of up to 33.33%. Management of the OJK.