Indonesian issuers plan massive rights issues for expansion

Several Indonesian companies are planning large-scale rights issues to raise capital for expansion and acquisitions.

PT Fortune Indonesia Tbk (FORU) plans to issue up to 215,096,316,400 new shares at an execution price of Rp126 per share, aiming to raise approximately Rp27.10 trillion. The company intends to use the majority of these funds, roughly Rp20.82 trillion, for an inbreng mechanism to acquire 10,780 Series A shares of PT Borneo Prima Coal (BP) from IMR Asia Holding Pte Ltd. This transaction would grant Fortune Indonesia 49% of BP's total issued and paid-up capital. The remaining funds will be used to provide loans to PT Borneo Prima Coal.

Separately, PT NexAI Digital Infrastruktur Tbk (MGLV) is targeting up to Rp2.53 trillion through its first rights issue. The company will issue up to 285,732,512 new shares at an execution price of Rp8,880 per share. MGLV plans to allocate approximately Rp1.6 trillion to its subsidiaries, PT Nextier GenAi Center and PT Nextier Askara Center, to strengthen its data center business. Specifically, Rp1 trillion is earmarked for the construction of data center facilities in the Batang Integrated Industrial Estate (KITB).