JAKARTA. PT Merdeka Battery Materials Tbk (MBMA), a nickel mining company under PT Merdeka Copper Gold Tbk (MDKA), plans to issue 10% of new shares under rights issue scheme to increase liquidity.

Regarding this corporate action, MBMA will ask for approval from Annual General Meeting of Shareholders (AGMS) on June 12, 2024. The rights issue will then take place no later than 12 months after the approval from AGMS.

The management of MBMA claimed that this corporate action will strengthen capital structure, as well as raise extra funds to support the company’s performance. Old investors’ portion is potentially diluted by up to 9.1% should it decide not to take part in this rights issue.

According to IDNFinancials data, the number of listed shares of MBMA reached 107.99 billion. Thus, the number of shares offered in this upcoming rights issue is projected to reach 10.79 million shares.

On yesterday’s (5/6) trading session, MBMA’s price was closed at IDR 580 per share. Assuming the company will proceed with this price, the company is projected to collect fresh funds of up to IDR 6.26 trillion from this rights issue. (KR/ZH)