PT Elang Mahkota Teknologi Tbk (EMTK) or Emtek plans to carry out additional capital without pre-emptive rights or a private placement worth Rp9.29 trillion.

The company will use proceeds from the private placement for investment, strengthen working capital, and develop its business.

Based on an official statement on Wednesday (24/3), Emtek has received approval through the Extraordinary General Meeting of Shareholders (EGMS) to carry out the corporate action on February 18, 2021.

The company will issue numbers of new shares of 4.75 billion units in the private placement. Meanwhile, the private placement price was Rp1,954, so that the total funds raised in the private placement reached Rp9.29 trillion.

The company did not mention who would absorb the new shares. However, this action will take place on March 31, 2021, and the company will announce the results on April 5, 2021.

With this action, the company's shareholders will undergo a dilution of share ownership proportionally according to the number of new shares issued, namely 8.88%. Investors will experience a relatively small dilution.