PT Medco Energi Internasional Tbk (MEDC) plans to increase its capital by providing Pre-emptive Rights for a maximum of 12.5 billion shares with a par value of Rp25 per share.

Referring to the company's official publication on Wednesday (21/7), the rights issue plan will seek approval from the AGMS to be held on August 26, 2021.

Medco plans to use the proceeds from the rights issue for capital expenditures and business entities, including for the acquisition of other companies in line with the company's business activities and business entities, and or to pay off the company's debts.

Shareholders who do not exercise their right to subscribe for new shares in the limited public offering will be diluted by a maximum of 33%.

The company believes that this rights issue can provide an optimal capital structure to support the company's growth agenda.