Take Note! Happy Hapsoro's Company, BUVA, to Seek Approval for a Large Rights Issue

Jakarta, CNBC Indonesia - Property company owned by Happy Hapsoro, PT Bukit Uluwatu Tbk (BUVA) will prepare to hold a General Meeting of Shareholders to seek approval from investors for a large rights issue.

In the proposed plan, BUVA will issue a maximum of 50 billion new shares. This amount is equivalent to approximately 203.11% of the total shares that have been placed and fully paid up at present.

This will also be the second rights issue after successfully raising additional capital last year. Previously, BUVA had carried out a rights issue of 4.03 billion shares at the end of 2025, with a total value reaching approximately IDR 604 billion, to finance the acquisition of assets of PT Summarecon Agung Tbk (SMRA), PT Bukit Permai Properti.

Management stated that the proceeds from the second rights issue will be used to strengthen the capital structure and support working capital and business development needs.

In addition, some of the funds are also planned to finance strategic acquisitions and repay the company’s and its subsidiaries’ debts. This debt repayment is expected to reduce interest expenses, especially compared to bank financing which has burdened cash flow.

From the commitment side, the controlling shareholders - including parties affiliated with businessman Happy Hapsoro - are reportedly ready to absorb their portion of the rights in this corporate action. This commitment is considered important to provide confidence to investors that the rights issue has strong internal support.

However, this corporate action also has significant consequences for public shareholders. Investors who do not exercise their rights in the rights issue may experience a dilution of ownership of up to 67.01%.

In addition to funding needs, this rights issue is also part of BUVA’s efforts to meet the Indonesia Stock Exchange (IDX) provisions regarding the minimum public shareholding (free float) of 15%.

Overall, BUVA’s rights issue is an important moment that has the potential to change the company’s capital map and ownership structure.

In addition to BUVA, the market is also observing a number of other issuers who will carry out rights issues with the following schedules:

Disclaimer: This article is a journalistic product in the form of CNBC Indonesia Research’s views. This analysis is not intended to invite readers to buy, hold, or sell related investor products or sectors. The decision is entirely up to the reader, so we are not responsible for any losses or profits arising from that decision.

CNBC INDONESIA RESEARCH

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