Sentul City, Property Company Owned By Conglomerate Stella Isabella Djohan Wants Rights Issue, Potential To Raise IDR 5.6 Trillion In Funds

JAKARTA - Property developer owned by conglomerate Stella Isabella Djohan, PT Sentul City Tbk (BKSL) plans to hold additional capital by pre-ordering securities (HMETD) aka rights issue.

According to the plan, Sentul City will issue a maximum of 100,625.5 million new BKSL Series D shares with a nominal value of IDR 50 per share.

Sentul City has not provided information regarding the price of the rights issue. Likewise with the implementation schedule.

In the disclosure of information on the Indonesia Stock Exchange (IDX), quoted on Thursday, February 24, Sentul City's management said that the price of the rights issue will be determined by referring to the provisions as stipulated in the IDX regulations.

Meanwhile, the rights issue will be carried out in an appropriate and reasonable time but not more than 12 months from the date of receipt of the approval of the Extraordinary General Meeting of Shareholders (EGMS).

Using the assumption that the price of the rights issue will be held at the closing price of BKSL shares yesterday, Tuesday, February 22, at a price of IDR 56 per share, Sentul City has the potential to reap fresh funds of IDR 5.6 trillion.

The proceeds from the rights issue will be used for payment of short-term obligations, acquisition of strategic land to enlarge the land bank, as well as financing for working capital and business development.

Sentul City will seek shareholder approval through the EGMS which will be held on April 1, 2022.

According to Sentul City's management, the planned rights issue will strengthen capital, reduce the number of short-term liabilities and increase liquidity, as well as increase the number of landbanks.