JAKARTA – PT Gunung Raja Paksi Tbk (GGRP) has announced its plan to carry out a Capital Increase with Pre-emptive Rights (PMHMETD), or rights issue, involving the issuance of 12 billion shares with a nominal value of Rp140 per share.

According to the disclosure to the Indonesia Stock Exchange (BEI) today (13/2), the execution price will be announced after the company obtains approval from its shareholders for this corporate action.

An Extraordinary General Meeting of Shareholders (RUPSLB) is scheduled for March 24, 2025.

“The PMHMETD must be executed no later than 12 (twelve) months after the date of the RUPSLB that approves the PMHMETD plan,” the management added.

The proceeds from the rights issue will be allocated for the purchase of machinery and equipment to develop low-carbon steel products.

"This is expected to produce products that are in high demand both domestically and internationally," the management explained.

Along with the PMHMETD, GGRP management also revealed plans to increase the company's authorized capital from Rp6.78 trillion to Rp12.17 trillion.

It is important to note that if shareholders opt not to participate in this corporate action, their ownership stake could be diluted by up to 49.77%.

As of January 2025, PT Apollo Visintama holds 19.4% of GGRP's 12.11 billion listed shares, while the public holds 9.7%. Additionally, PT Gunung Garuda owns 13.9%, Kamaruddin holds 17.1%, Dr. Chairuddin has 16.7%, Suliana Taniwan 8.1%, Fihahati Taniwan 7.6%, and Richie Leroy Hasan and Edward Hasan each own 3.8%. (ZH)