Indonesian Stock Market Slumps, 5 Issuers Plan Rights Issues

The rights issue season remains active this year, with five new issuers announcing plans to increase capital through the issuance of new shares. This is occurring amid the sluggishness of the Indonesian stock market. The Composite Stock Price Index has plummeted from the 9,000 level in January and is now around 7,000. The companies are PT TBS Energi Utama Tbk (TOBA), PT Royaltama Mulia Kontraktorindo Tbk (RMKO), PT Wahana Interfood Nusantara Tbk (COCO), PT Pyridam Farma Tbk (PYFA), and PT Tripar Multivision Tbk (RAAM). The rights issue plans from all these issuers are still in the phase awaiting investor approval at the Annual General Meeting of Shareholders (AGMS). If approved, they will then await effective permission from the Financial Services Authority (OJK). Given the long queue of issuers planning rights issues this year, there is a high likelihood that the redemption period could extend into next year. After the GMS, the rights issue must be executed at the latest within 12 months, unless there are unforeseen circumstances or other reasons. Here is a breakdown of the rights issue plans for these five issuers. TOBA The rights issue plan from TOBA is part of a business transformation towards green energy. The company plans to issue a maximum of 1.39 billion new shares for the development of renewable energy projects as well as the electric vehicle (EV) ecosystem and energy processing from waste. To date, there has been no official announcement regarding a standby buyer, but generally, controlling shareholders will maintain their ownership stake. In the near future, TOBA is still awaiting the effective statement from OJK after obtaining approval through the Extraordinary General Meeting of Shareholders (EGMS) on 16 April 2026. RMKO Next is RMKO, which plans to conduct a rights issue by issuing a maximum of 512 million new shares or equivalent to 29.06% of paid-up capital. The funds raised will be used for working capital and to strengthen the capital structure, including supporting the expansion of the coal logistics business in South Sumatra. The proceeds will be focused on increasing hauling capacity, developing ports, as well as working capital and partial repayment of financial obligations. The next agenda is the EGMS on 8 April 2026 to seek investor approval for this capital increase action plan. COCO Next is the chocolate producer issuer, COCO, which plans to issue up to 10.67 billion new shares through a rights issue. The funds will be used for expanding chocolate production capacity, including building new facilities and purchasing machinery up to buying cocoa beans, which are the raw material for chocolate. The company’s latest agenda is the EGMS on 5 May 2026 to seek investor approval for this action. Before that, the company will also finalise the rights issue prospectus throughout April. PYFA Then there is the pharmaceutical company, PYFA, which will hold a rights issue aimed at funding the acquisition of the Mayne Pharma factory in Salisbury, South Australia. The nearest plan is for PYFA to first hold an EGMS on 22 April 2026 to seek approval for issuing a maximum of 5.7 billion new shares. The funds raised from this will be used for the acquisition and strengthening the capital structure, including global expansion in the pharmaceutical sector in Australia. In addition, as a sweetener, PYFA also plans to issue warrants of up to 35% of the total shares that have been placed and fully paid up. RAAM Finally, there is RAAM, which will conduct a rights issue by issuing a maximum of 1,362,724,000 new shares or equivalent to a maximum of 20% of the placed and fully paid-up capital. The rights issue plan will seek approval at the EGMS scheduled for 5 May 2026. The funds obtained from the rights issue proceeds will be allocated to two main company needs. First, as working capital to finance the production of various creative content such as films, web series, and soap operas, including for marketing purposes and investment in supporting business lines. Second, the company will inject capital into its subsidiary, PT Platinum Sinema, with an ambitious target to build and operate 50 new theatres in various cities in Indonesia. This strategic step is expected to strengthen the capital structure of the parent company and subsidiary to support future business performance. However, management also warns that shareholders who do not exercise their rights in this rights issue could face dilution of ownership of up to 16.67%. In addition to approval for the capital increase, the upcoming EGMS will also discuss amendments to the articles of association regarding the capital increase and granting authority to the board of directors to set the exercise price of the shares.