PT Darma Henwa Tbk (DEWA) will conduct a rights issue of 22 billion Series B shares, whose proceeds will be utilised to pay debts and fund the company’s working capital. Chief of Legal and Corporate Secretary of Darma Henwa, Muhammad Baskoro, announced the plan in the information dislcosure quoted Tuesday (5/4).

It was mentioned that Series B shares originated from the company’s stock portolio, worth IDR 50 per share. “This plan still needs approval from the Extraordinary General Shareholders Meeting on May 13, 2022, and will be carried out no more than 12 months after the meeting’s consent,” Baskoro confirmed.

The allocation of the proceeds has been arranged to 28.50% for debt payment and 71.50% for the company’s working capital. The company’s performance is predicted to increase, assuming that the Q3 2021 Financial Report was utilised as the base reference. The report estimated that the company’s reserves would be USD 55 million higher, amounting to USD 77.05 million, as would its total assets from USD 573.92 million to USD 628.92 million. Furthermore, the (third-party) business debts would shrink by USD 21.92 million, from USD 72.16 million to USD 50.23 million, as would its total liabilities, from USD 302.28 million to 280.36 million. In contrast, its total equity will rise from USD 271.63 million to USD 348.56 million.

Assuming that the currency exchange rate is IDR 14,300 per USD, the estimated increase in reserves of USD 55 million is equivalent to IDR 786.50 billion. Thus, this is the minimum amount of fresh funds eyed by DEWA in this rights issue plan

Source: https://www.idnfinancials.com/news/42715/dewa-hold-rights-issue-series-shares