One of Kioson's Shareholders Conducts "Right Issue" to Inject Subsidiaries

Issuer of digital-based telecommunications company PT Mitra Communication Nusantara Tbk (MKNT), one of the shareholders kiosk, announced the plan to issue new shares, followed by warrants through the mechanism of Capital Addition of Pre-emptive Rights (PMHMETD) or better known as rights issue.

Under this plan, MKNT will issue a maximum of 4 billion new shares at a price of Rp20 per share. Issuance of shares will also be followed by option warrants to existing shareholders. The hope is that the company can reap fresh funds of IDR 1,2 trillion, with details from the issuance of IDR 600 billion shares and IDR 612,5 billion warrants.

The entire fund is planned to be used by MKNT to inject capital for its three subsidiaries and strengthen the company's capital structure. MKNT's subsidiaries are PT Kioson Komersial Indonesia Tbk (Kioson), PT Mitra Sarana Berkat (MSB) and PT Mitra Telindo Nusantara (MTN).

MKNT owns 3,8% of Kioson's shares. Kioson's other shareholders are Artav Mobile Indonesia 53,89%, Seluler Makmur Sejahtera 9,62%, and the rest is owned by the public.

"The main allocation of funds from rights issue we will direct it to the subsidiary's capital expenditure. We see that the productivity of subsidiaries is very high, so financial support is needed," explained MKNT President Director Jefri Junaedi in an official statement received by DailySocial, Monday (16/10).

Quote from Bisnis.com, the company will inject around 70% of the funds raised or around Rp420 billion for MSB. Because, so far, the company's largest turnover is around 95% contributed by MSB. This subsidiary has five entities in the field of pulse trading, one of which is PT Graha Planet Nusantara.

After obtaining approval from the shareholders through the Extraordinary General Meeting of Shareholders (EGMS) that has been held, MKNT will prepare a schedule for the issuance of new shares, as well as the target price for offering new shares and warrants. Next, set the implementation agenda rights issue no later than next year.

In the share issuance mechanism followed by warrants, the company opens up opportunities for MKNT's existing shareholders to increase their assets. The ratio determined is that every holder of 20 old shares is entitled to 8 new shares plus 7 warrants. The company plans to issue 1,75 billion warrants to attract loyal MKNT investors.

The majority shareholder of MKNT is PT Monjess Investama with 51% and the rest is owned by the public. Established in 2008, MKNT's business focuses on three main aspects in the telecommunications industry, namely general trading of cellular phones, gadgets, and top-up vouchers.

MKNT previously worked with Telkomsel to distribute top-up vouchers with the company's mobile phone products, sold wholesale or retail directly to users.