MDKA Plans Private Placement, Issuing 2.44 Billion New Shares

Jakarta, CNBC Indonesia — Gold mining issuer PT Merdeka Copper Gold Tbk (MDKA) plans to conduct a capital increase without pre-emptive rights (PMTHMETD), or private placement, of up to 2.44 billion new shares. The number of shares to be issued is equivalent to a maximum of 10% of the company’s total issued and fully paid capital, which stands at 24.47 billion shares. The new shares have a nominal value of IDR 20 per share.

“Through PMTHMETD IV, the company hopes to obtain an alternative source of funding for the company’s interests,” according to a disclosure on the Indonesia Stock Exchange, Friday (19/6/2026).

Assuming all 2,447,298,377 new shares are issued at IDR 2,860 per share (MDKA’s closing price yesterday), the potential funds raised would be around IDR 7 trillion. The proceeds from the private placement will be used to support the working capital needs of the company and its business group, with an allocation of approximately 30% of the total funds obtained from the corporate action. The remaining funds will be used for the business development of the company and its group, which may be carried out through capital expenditure, share purchases, asset purchases, equity participation, or other forms of transactions.

However, as of the publication of this disclosure, MDKA stated that it has not yet entered into any agreements or arrangements regarding the use of the PMTHMETD proceeds, nor has it determined which companies will receive capital injections from these funds. The company has also not yet identified the prospective investors who will absorb the new shares from PMTHMETD IV.

The implementation of PMTHMETD IV will first require approval from independent shareholders through an Extraordinary General Meeting of Shareholders (RUPSLB). In accordance with applicable regulations, the corporate action must be realised within a maximum period of two years from the date of shareholder approval.

In terms of impact, MDKA estimates that the issuance of new shares will increase the trading liquidity of the company’s stock and strengthen its capital structure to support business development. However, existing shareholders could face dilution of their ownership by up to 9.091% if all the new shares are issued. The company has confirmed that there will be no change in control following the realisation of PMTHMETD IV.