JAKARTA. PT Japfa Comfeed Indonesia Tbk (JPFA) will schedule a capital raise with preemptive rights, also known as rights issue, of up to 10% of its issued and paid-up capital.

In order to conduct this rights issue, JPFA will first ask for approval during the Extraordinary General Shareholders Meeting on April 5, 2023.

The number of new shares offered by JPFA in its rights issue is said to reach 1,172,657,520 units. Thus, the original investors that do not participate in the rights issue might potentially have their portions diluted by up to 9.09%.

In its official disclosure, the management of JPFA claimed that the rights issue proceed will be used to cover corporate needs. They include reducing liabilities, investments, enhancing working capital, and other needs that will benefit the company and its subsidiaries.

As mentioned in IDNFinancials before, JPFA had planned to hold another corporate action, a shares buyback. The percentage of shares that will be repurchased is equal to 1.5% of its entire issued and paid-up capital. (KR/ZH)