These three issuers will hold rights issue, check recommendations from analysts

Reporter: Ika Puspitasari | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. Action to increase capital through pre-emptive rights (HMETD) alias rights issue still crowded at the end of this year. Next week, there are at least three issuers that will reach the period cum date rights issue.

First, there is PT Matahari Putra Prima Tbk (MPPA) which offered 1.17 billion shares of common stock in the name or new shares. The shares released represent a maximum of 13.46% of the issued and fully paid capital after the LPO. The exercise price is set at IDR 760 per each share and will reach the cum date on December 6, 2021.

Second, PT Bank Nationalnobu Tbk (NOBU) issued a maximum of 164 million new shares with a par value of Rp 100 per share, of which each share is offered at a price of Rp 1,205. The offered value represents 3.57% of the issued and fully paid capital after the LPO. The cum date is December 6, 2021.

Third, there is the issuer of paper and chemicals, PT Alkindo Naratama Tbk (ALDO) which released 216 million shares or the equivalent of 19.7% through a limited public offering (PUT) II mechanism. The exercise price is set at IDR 725 per share and will reach the cum date on December 8, 2021.

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Binaartha Sekuritas analyst Lingga Pratiwi said the purpose of the three issuers was to hold rights issue to increase working capital, to support future business plans.

“As long as the additional working capital and realization are good, it is still considered attractive and worthy of investment,” he said when contacted by Kontan.co.id, Friday (12/3).

In terms of the price of its implementation, Lingga sees, the price rights issue MPPA and NOBU are above current market prices. On Friday’s trading, MPPA’s share price closed down 3.42% to Rp 565 per share. Meanwhile, NOBU’s share price fell 2.56% to Rp 760 per share.

“For MPPA and NOBU this is the price” rights issueis above the current market price, it should be if rights issueis attractive to investors, generally, the market price will follow the execution price rights issueThis is a momentum that market players often take advantage of,” said Lingga.

Nevertheless, he continued, rights issue is said to be attractive if the purpose of using the funds is for business expansion purposes, not paying debts. Then, the price rights issue cheaper than the market price.

Furthermore, he suggested that good market participants could enter when rights issue announced, with detailed explanations such as the use and amount of funds. If it has not been entered, it may be better for investors to wait for the results of the rights issue, to what extent the use of fresh funds can be realized.

If you look at the planned use of the funds, Lingga assesses, rights issue MPPA and NOBU are attractive to redeem.

Previously, a number of issuers have also held rights issue such as PT Bank Aladin Syariah Tbk (BANK) and PT Bank KB Bukopin Tbk (BBKP). Lingga sees that BBKP is quite cheap in terms of its valuation with a PBV of 1.19 times. Currently, BBKP’s share price is closed at Rp. 296 at the close of trading on Friday (3/12).

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