The Hypermart Manager, Owned By Mochtar Riady Conglomerate Is Targeting IDR 800 Billion From The Rights Issue

Illustration. (Photo: Unsplash)

JAKARTA - The manager of Hypermart, PT Matahari Putra Prima Tbk will take corporate action to increase capital with Pre-emptive Rights (HMETD) or a rights issue. The company coded MPPA shares is eyeing as much as IDR 800 billion from this action.

Matahari Putra Prima Corporate Secretary, Danny Kojongian, in a virtual public expose in Jakarta, Thursday, April 29, said that currently, the rights issue preparation is still in its early stages. So, according to him, there is no in-depth information that can be conveyed, including the existence of strategic investors.

"As preliminary information, the indication of an increase in capital is around IDR 500 billion - IDR 800 billion and will be used to strengthen the company's plans and working capital", said Danny.

Some of the issuer's business development strategies with the MPPA ticker code include strengthening omnichannel as well as network and logistics along with big data analysis capabilities. Danny added that the implementation of the rights issue is estimated to be carried out in 2021.

Meanwhile, the Director of PT Multipolar Tbk Agus Arismunandar said the company will increase share ownership through the MPPA rights issue. Previously, Multipolar sold 11.9 percent of its MPPA shares. However, the proceeds from the sale transaction are said to be reinvested in MPPA.

"The release of MPPA shares was motivated by the company's intention as the largest shareholder in MPPA to strengthen MPPA's financial structure, and this transaction aims to obtain investor funds which will then be reinvested in MPPA", said Agus.

After the MLPL released the ownership of 11.9 percent of MPPA's shares, it was observed that these shares were absorbed by several other corporations such as Watiga Trust Ltd. from Singapore to PT Pradipa Darpa Bangsa.

"From the information we obtained, at that time some of the 11.9 percent released by the MLPL switched to Watiga Trust Ltd. This is a Singapore-based trust company", said Danny.

However, added Danny, from the latest information obtained by MPPA, it appears that Watiga Trust is no longer a shareholder with ownership of more than 5 percent in MPPA.

Meanwhile, the MPPA's shares are still suspended by the stock exchange until April 29, 2021, and the price is stuck at the level of IDR 860 per share. Since the beginning of the year, the MPPA skyrocketed 719.05 percent with a market capitalization of IDR 6.48 trillion.