Summarceon Targets To Raise IDR 1.5 Trillion In Funds From Rights Issue

Residential in the Summarecon Bogor area. (Photo: Doc. Summarecon)

JAKARTA - On April 1, 2021, property developer PT Summarecon Agung Tbk (SMRA) has held an Extraordinary General Meeting of Shareholders (EGMS) with the agenda of Approval of additional capital by granting Pre-emptive Rights (HMETD) to shareholders that will be held by the company through the second limited public offering mechanism (PUT II).

The amount of funds that Summarecon is targeting from this LPO II is as much as IDR 1.5 trillion with an exercise price which will be determined later. In this case, the majority shareholder of SMRA has stated that they will participate in executing their rights.

Summarecon plans to use the proceeds from this rights issue to strengthen the capital structure, debt payments, and working capital to accelerate the company's business development, either directly or indirectly through its subsidiaries.

"This rights issue is expected to strengthen the company's capital structure so that it can increase the ability to improve business activities, performance, and competitiveness of the Company. With the increased performance and competitiveness of the company, it is also expected to increase the return on investment value for all shareholders of the company", said the President Director of Summarecon, Adrianto P. Adhi, in his written statement, Wednesday, April 7.

Summarecon is optimistic about the growth of the property market in the country. With various support from government regulations, the reduction in the number of COVID-19 transmissions accompanied by mass vaccination activities will support the gradual recovery of property sales.

"Thus, the company's future performance will also increase along with the development of the company's business scale, through the development of products that will increase economic added value for all stakeholders", he explained.