Issuers Flock to Raise Additional Capital Through Rights Issues, Here Are the Advantages

Fundraising in the capital market remains vibrant, particularly through capital increases via the Rights to Purchase Securities First (HMETD) scheme, or rights issue. Based on Indonesia Stock Exchange (BEI) data as of 17 April 2026, three listed companies have issued rights issues with a total value of Rp 3.75 trillion. Several issuers have recently obtained approval from the Shareholders’ General Meeting (RUPS) to execute this corporate action, while others have just issued prospectuses. PT Asuransi Digital Bersama Tbk (YOII), which recently received RUPS approval on 15 April 2026, will issue 684.93 million new shares at Rp 100 per share. Rahmat Dwiyanto, Corporate Secretary of Asuransi Digital Bersama, stated that this corporate action was chosen because the rights issue mechanism is currently the most optimal, especially in fulfilling the equity requirements of POJK 23/2023. “If funded through loans, YOII would gain liquidity but would not meet equity requirements as loans would be recorded as liabilities under applicable PSAK,” he explained to Kontan last weekend. Additionally, Rahmat said, this mechanism also provides opportunities for shareholders and public investors to participate in YOII’s business development and growth plans. “From management’s perspective, the advantage of rights issue lies in its ability to strengthen capitalisation directly and sustainably without increasing YOII’s financial risk,” he stated. Elbert, Finance Director of Royaltama Mulia Kontraktorindo, said rights issue was chosen for several considerations. First, in the post-investment stage, where RMKO still requires financial and operational flexibility. “Rights issue strengthens the capital structure and maintains cash flow flexibility. Meanwhile, loans and bonds limit the company’s operational manoeuvrability in terms of interest and covenants,” he said. Besides rights issues, bond issuance is another alternative to bank funding. BEI records show that as of 17 April 2026, 52 issuers from 35 EBUS issuers have issued bonds worth Rp 57.16 trillion. PT TBS Energi Utama Tbk (TOBA), for example, is opting for both rights issue and bonds. TOBA recently received shareholder approval in an Extraordinary General Meeting held on 16 April 2026. For debt securities, TOBA plans to issue Sustainable Bond I TBS Energi Utama Phase III Year 2026 with a principal amount of Rp 175 billion. If there are no obstacles, the public offering period will run from 4–7 May 2026. TOBA offers a fixed interest rate of 9% per year with a 7-year tenor from the issuance date. Principal repayment will be made in full on the Principal Repayment Date, which is 13 May 2033. Mirza Hippy, SVP Corporate Finance & Investor Relations of TBS Energi Utama, said that as part of the strategy to transition to green energy, TOBA consistently evaluates various funding instrument options, both through equity and loans. In his notes, throughout 2025 and 2026, TOBA has issued Sustainable Bonds in three phases. Indeed, TOBA has obtained permission to conduct a Public Offering of Sustainable Bond I TBS Energi Utama with funds of Rp 800 billion. TOBA has issued Sustainable Bond I TBS Energi Utama Phase I Year 2025 with a principal amount of Rp 125 billion. Meanwhile, Phase II was conducted in 2025 with a principal of Rp 500 billion. Mirza said that before executing the rights issue, TOBA will continue to evaluate the dynamic capital market conditions and the interest of potential investors, while prioritising the best interests of all shareholders. Capital market observer from the University of Indonesia, Budi Frensidy, assessed that rights issues are superior because companies can obtain funds without adding interest burdens and without pressuring cash flow like bank loans or bonds. “From the balance sheet perspective, it is also better because it directly adds to equity and improves leverage. It also helps issuers increase the free float of shares,” he explained. According to him, rights issues are often superior in terms of ease because if there is a standby buyer or controlling shareholder ready to absorb, the certainty of funds entering is higher. “The choice of rights issue by issuers over debt can also be seen as issuers feeling that their share prices are currently good and not undervalued,” Budi said.