Get Ready: Indonesian Issuer Plans Massive Rights Issue and Share Buyback
The plastic packaging issuer PT Megalestari Epack Sentosaraya Tbk (EPAC) has announced plans for a Capital Increase with Pre-emptive Rights (PMHMETD I), commonly known as a rights issue, of 2 billion new shares, alongside a share buyback with an allocation of Rp20 billion to strengthen its capital structure.
Both proposals will be submitted for shareholder approval at an Extraordinary General Meeting of Shareholders (EGMS) scheduled for 3 November 2026.
Through the rights issue, EPAC plans to issue up to 2,000,000,000 new shares. This figure represents the maximum limit of the proposed issuance. The execution price, rights ratio, and the total funds to be raised have not yet been determined.
The proceeds from the rights issue, after deducting issuance costs, are planned for three capital expenditure needs aligned with the Company’s business activities: business development, the reduction of certain debts (particularly bank loans), and working capital.
“Additional working capital is expected to support the procurement of raw materials, the production process of flexible plastic packaging, the fulfilment of customer orders, and distribution,” as quoted from the Indonesia Stock Exchange (BEI) information disclosure on Tuesday (29/09/2026).
On the other hand, EPAC plans a buyback of up to 10% of its fully placed and paid-up capital as of the date of the EGMS, with a maximum budget of Rp20 billion, including transaction costs. The buyback is planned to take place gradually over a maximum period of 12 months after obtaining EGMS approval, considering the availability of funds and the Company’s operational needs.
“The implementation of both corporate actions depends on the necessary approvals, the Company’s condition, and the final terms that will be communicated in accordance with applicable regulations,” the company stated.
Following the news, EPAC shares fell by 13.95% to Rp37 at the start of today’s trading. Its market capitalisation was recorded at Rp122.23 billion.