EURO Plans Jumbo Rights Issue; Absent Investors Face Share Dilution

Jakarta, CNBC Indonesia - Aerosol filling services issuer PT Estee Gold Feet Tbk (EURO) plans to carry out a rights issue of 2 billion shares. The new shares are priced at a nominal value of Rp5.

Investors who abstain from the action will experience a maximum share ownership dilution of 43.97 percent. The corporate action will be held within a 12-month period. This follows EURO obtaining approval from its shareholders and an effective statement from the Financial Services Authority (OJK).

The company plans to hold a general meeting of shareholders (RUPS) to seek shareholder approval on 18 September 2026. The company believes the rights issue plan will have a positive impact on financial performance, strengthen operational performance, and improve the capital structure.

In addition, the capital increase can also enhance the ability to expand the business and boost profits. Thus, EURO is expected to improve the return on investment value for all shareholders of the company.

The proceeds from the rights issue, after deducting all fees, costs, and other expenses, will be used for working capital and increasing business capacity to support business activities. If part or all of the rights issue proceeds are used for a material transaction, affiliated transaction, and/or transaction containing a conflict of interest, EURO will comply with applicable regulations regarding material transactions, affiliated transactions, and/or transactions containing conflicts of interest, as relevant.