Jakarta - PT Kimia Farma Tbk (KAEF) plans to increase its capital by providing preemptive rights of 2.779 million series B shares or issuing mandatory convertible bonds to be converted to as many as possible 2.799 billion series B shares.

Based on the company's brief prospectus published on Friday (9/9), it will request approval of the proposed transaction at the Extraordinary General Meeting of Shareholders on October 14, 2022.

The proposed rights issue will affect KAEF's ability to refinance the company's maturing debt and obtain better conditions for the company.

Thus, the company still has cash funds for business development.

The shareholders of the company who do not exercise their rights to subscribe to the new series B shares offered or do not place an order for OWK will be subject to a maximum dilution of 33.35%.