Alfamidi Asks For Stock Split Restu To Right Issue, This Is The Goal!

JAKARTA - PT Midi Utama Indonesia Tbk (MIDI) or Alfamidi has announced a plan to increase capital with pre-emptive rights (PMHMETD) or rights issue and stock split.

This requires approval at the Extraordinary General Meeting of Shareholders (EGMS) which will be held on February 17, 2023.

Citing information disclosure, Thursday, January 9, the Company conveyed its plan to increase its issued and paid-up capital through the PMHMETD I mechanism, namely by offering a maximum of 461,176,480 shares with a nominal value of Rp100 per share to the shareholders of the Company.

"The proceeds from PMHMETD I, after deducting the costs of issuance, will all be used by the Company for working capital and the development of the Company's business activities and its subsidiaries, among others, but not limited to outlet development," quoted information disclosure.

In addition, the Company will also seek approval for the plan to split the share value (Stock Split). So the number of New Shares to be issued can change if the Share Value Breaking has been approved in the EGMS and implemented by the Company.

Where, the new shares to be issued are a maximum of 4.61 billion ordinary shares in the name with a nominal value of IDR 10 per share.

The company plans to implement PMHMETD I within a period of time in accordance with POJK provisions No.32/2015 where the implementation of PMHMETD I must be carried out after the Company obtains an effective statement from the OJK and with the provision that the period of time is no more than 12 months from the date of approval of the EGMS.

The implementation of PMHMETD I will have a positive effect on the financial condition of the Company's consolidation, including strengthening the company's capital structure and increasing cash capacity to meet the company's working capital needs so as to provide added value for shareholders.

From VOI's observation, MIDI's share price today rose 40 points or 0.95 percent to Rp4,240. When compared to the closing of 2022 which amounted to Rp2,970, MIDI's share price has increased by 42.76 percent.