Indonesian Issuer to Launch Massive Rights Issue, Targeting Rp4.95 Trillion for Acquisitions

Indonesian property issuer, PT DMS Propertindo Tbk (KOTA), plans to conduct a massive rights issue of up to 100 billion shares, which could result in a maximum dilution effect of 90.46%.

While the execution price, rights issue ratio, and final fund value have not yet been announced, the proforma assumes a total fund receipt of Rp4.95 trillion. Of this amount, Rp4.4 trillion will be allocated to acquire 99.99% of the shares in Art Design Indonesia valued at Rp1.2 trillion, and 99.99% of the shares in Mandirinusa Grahaperkasa valued at Rp3.2 trillion from Michel Energi.

The remaining funds will be utilised for working capital, operational activities, and business development. These acquisitions will provide access to a land bank of approximately 571 hectares in Surabaya and Maja. The plan is currently awaiting approval at the Extraordinary General Meeting of Shareholders (RUPSLB) scheduled for 6 October 2026.

DMS Propertindo is a company engaged in property development, hospitality, and hotel management. The company develops residential and commercial areas, while its hospitality business is operated through various assets and subsidiaries.

The company was listed on the Indonesia Stock Exchange on 9 July 2019 through an IPO at an offering price of Rp200 per share. During its IPO, the funds raised were used for land purchases and working capital requirements.