JAKARTA. PT Merdeka Copper Gold Tbk (MDKA), a gold mining company debuted on Indonesia Stock Exchange (IDX) in 2015, will issue additional shares without pre-emptive rights, also known as private placement.

Through this corporate action, MDKA will issue at most 2.44 billion new shares, equal to 10% of its issued and paid-up capital. In order to execute this plan, the company will first have to ask for approval from shareholders during the Extraordinary General Meeting of Shareholders, scheduled to take place next June 12, 2024.

The proceeds gained by MDKA in this private placement is expected to be the alternative of funding source for the company. To be exact, the proceeds will be channelled to its working capital, particularly to support business expansion, be it for acquisition or asset purchase.

“By the time this information disclosure is published, there has yet to be a potential investor declaring their intention to take over the shares newly issued through the Private Placement III of the company,” added the management of MDKA in the information disclosure in Indonesia Stock Exchange.

According to IDNFinancials data, this corporate action will potentially dilute the existing investors’ portion by up to 9.091%.

For the record, prior to this, MDKA had concluded its first private placement in April 2024, by issuing 362.13 million shares. In this corporate action, the company collected fresh funds of IDR 785.10 billion. (KR/ZH)