JAKARTA. PT MD Entertainment Tbk (FILM), an entertainment and film production house, plans to issue 951.12 million new shares without pre-emptive rights, or private placement.

The number of newly issued shares is equal to 10% of FILM’s current issued and paid-up capital. The private placement price is set to at least 90% of average closing price of the company in Indonesia Stock Exchange (IDX) within the past 25 consecutive days.

Prior to this, on August 26, 2024, FILM had signed a Conditional Shares Subscription Agreement along with PT Permata Surya Gitatama (PSG) and PT Teladan Investama (TI). In said agreement, PSG and TI are said to take over new shares issued by FILM, with total value of IDR 661.95 billion.

In the information disclosure in IDX, the management of FILM mentioned that the issuance of new shares will enhance the stock liquidity of the company. “The private placement will generate extra fund to the company in order to promote business development of the company and its subsidiaries, as well as improving the capital structure of the company,” added the management of FILM.

Regarding this corporate action, FILM will first ask for approval from Extraordinary General Meeting of Shareholders that will be held on October 4, 2024. The issuance and distribution of new shares is then scheduled to take place on October 25, 2024.

“With the issuance of the entire new shares according to the private placement plan, all shareholders of the company will have their portions diluted proportionally by up to 9.09%,” added the management of FILM. (KR/ZH)