MGLV, BMAS, KOTA, and CBRE Plan Rights Issues; Analysts Provide Recommendations
Several issuers are preparing rights issue actions to strengthen capital or support expansion agendas. These include PT NexAI Digital Infrastruktur Tbk (MGLV), PT Bank Kasiklo Indonesia Tbk (BMAS), PT DMS Propertindo Tbk (KOTA), and PT Cakra Buana Resources Energi Tbk (CBRE).
MGLV plans to issue approximately 285.7 million new shares to support the acquisition of artificial intelligence (AI) data centre assets. Meanwhile, BMAS is preparing a rights issue of 2.87 billion shares for credit expansion. In the property sector, KOTA will issue 100 billion shares to support land acquisitions.
Kiwoom Sekuritas Indonesia analyst Adrian Djie assesses that a rights issue is a relatively realistic choice when issuers require funding to acquire large-scale assets, particularly those that have not yet generated cash flow. “Equity funding is far more realistic than interest-bearing debt, which could potentially burden the balance sheet during the acquisition process,” Adrian told Kontan on Friday (11/9/2026).
According to Adrian, the effectiveness of a rights issue on company performance depends heavily on the use of funds. The capital raised must be capable of generating profit growth commensurate with the additional capital. For expansion-oriented corporate actions, the impact on performance is likely to become visible in the coming quarters.
Capital market observer and Founder of Republik Investor, Hendra Wardana, stated that the rights issues for MGLV, BMAS, KOTA, and CBRE are essentially aimed at strengthening capital while financing growth plans. “A rights issue provides additional capital that is more permanent and does not increase interest burdens,” said Hendra.
Nevertheless, a rights issue is not automatically a positive catalyst for stocks. Investors need to observe whether the additional capital can produce greater revenue and profit growth compared to the increase in the number of shares. For MGLV, the rights issue funds will be used to support expansion into the AI data centre business. Hendra sees the prospects of the data centre industry as still attractive due to the increasing demand for computing, cloud, AI, and data storage.
If the expansion proceeds as expected, the additional capital could become a new source of growth for MGLV. Conversely, if asset monetisation is slow, the increase in the number of shares could potentially pressure earnings per share (EPS). “The market should not only look at the AI narrative as a catalyst, but must also look at MGLV’s ability to generate revenue, EBITDA, and cash flow from the acquired assets,” said Hendra.
For MGLV shares, Hendra recommends a ‘sell on strength’ strategy with a target of around Rp13,000. He considers the AI data centre story attractive for the long term, but market expectations and execution risks are also high.
Meanwhile, the BMAS rights issue, intended for credit expansion, is considered quite reasonable from a fundamental perspective. Additional capital can increase the bank’s capacity to disburse loans. However, credit growth does not automatically result in increased profits. Investors need to pay attention to credit quality, net interest margins, provisioning costs, and non-performing loan (NPL) levels. For BMAS, Hendra provides a ‘sell on strength’ recommendation with a target of around Rp500 per share. He will be more positive if credit expansion begins to contribute significantly to profits without excessively increasing credit risk.
Unlike the first two issuers, KOTA is using its rights issue to support land acquisitions and expand its land bank. According to Hendra, this action has the potential to be a transformational step as it can enlarge the asset base and open space for long-term project development. However, large-scale land ownership does not automatically generate profit. KOTA’s performance will be heavily determined by the company’s ability to develop the land, the capital required for projects, sales timing, and the margins that can be obtained. “Investors must understand that owning large amounts of land does not necessarily lead to immediate profit,” said Hendra. Hendra provides a ‘spec buy’ recommendation for KOTA with a target of around Rp240. He believes the stock has growth potential from the increased land bank, but the risk is also high as the success of the corporate action depends on land development execution.
CBRE has a different character, as a large portion of the rights issue funds will be used to convert debt into shares. Hendra assesses that this action can improve the balance sheet structure, as converting debt into equity has the potential to reduce obligation pressure and financial burdens. With a significant number of new shares, investors need to recalculate the value per share after the rights issue, rather than just looking at the share price before the corporate action. From a technical perspective, Adrian sees CBRE shares having the potential to rebound with a short-term target of around Rp800 per share.