JAKARTA – PT Bukit Uluwatu Villa Tbk (BUVA), a Bali-based hospitality issuer, is preparing to conduct a Capital Increase with Pre-emptive Rights (PMHMETD), or rights issue, of 3.6 billion shares.

This number of shares is equivalent to 17.48% of the company’s issued and paid-up capital, which stood at 20.6 billion shares, valued at IDR 1.03 trillion as of January 2025.

Thus, if shareholders choose not to participate in this corporate action, their ownership stake may potentially be diluted by 17.48%.

According to a disclosure to the Indonesia Stock Exchange yesterday (13/2), the plan will be discussed and decided at the Extraordinary General Meeting of Shareholders (EGMS) on March 24, 2025.

The rights issue will take place within a year after obtaining approval from the EGMS.

“The company plans to use all net proceeds from the capital increase (after deducting issuance costs) to fund its upcoming projects,” BUVA management stated.

Furthermore, the funds from rights issue may also be allocated to drive inorganic growth—through the acquisition of other companies—and to settle obligations.

The company has not yet specified the exercise price for the upcoming rights issue, but BUVA has already recorded a significant price increase since the beginning of the year, up 110.53% year-to-date (ytd), from IDR 57 to IDR 121 per share as of 11.30 AM WIB. (ZH)