PT Mitra Communications Nusantara Tbk (MKNT) plans to increase capital without pre-emptive rights or private placement by issuing as many as 500 million new shares.

"The private placement's exercise price is Rp50 per share," said MKNT Managing Director Jefri Juanedi in a written statement, Tuesday (2/3).

Thus, the company's target funds in the implementation of the private placement are Rp25 billion.

After implementing this corporate action, the company will issue total shares amounting to 5.5 billion from its portfolio shares. PT Monjess Investama is the party that will receive all of the new shares.

The company has received shareholder approval at the Extraordinary General Meeting of Shareholders on February 18, 2021. The company will hold the private placement of additional shares on March 8, 2021, and the announcement of the results of the implementation of the private placement plan is on March 10, 2021.

In the period ended June 2020, the company posted a profit for the period attributable to the parent company owners of Rp16.406 billion or lower than the same period last year of Rp19.363 billion. The net income was at Rp2.880 trillion.