JAKARTA. PT Yelooo Integra Datanet Tbk (YELO) will issue 837.79 million new shares by providing Pre-emptive Rights (HMETD) or rights issue.

The number of shares to be issued by YELO is equivalent to 30.46% of the issued and fully paid capital after the rights issue. Each share has a nominal value of IDR 100.

The share price and rights issue ratio will be determined after YELO receives approval from the Extraordinary General Meeting of Shareholders (GMS). The agenda for the company's Extraordinary GMS is scheduled for January 8, 2024.

In the disclosure of information on the Indonesian Stock Exchange (BEI), YELO will use all proceeds from the rights issue for capital support for its subsidiary, namely PT Telemedia Komunikasi Pratama (TKP). Later, TKP will use the capital injection for working capital.

For the record, YELO management proposed a rights issue share price of IDR 10 per share. Assuming this price, the company has the potential to reap fresh funds of up to IDR 83.78 billion from this corporate action.

According to idnfinancials.com data, YELO's book value as of June, 30 2023 is at IDR 155.5 per share. Meanwhile, the company's share price over the last month has remained stagnant at IDR 50 per share. Thus, the rights issue share price that the company will propose is indeed higher than the current share price, but cheaper than the company's book value. (KR/LM)