Textile issuer PT Argo Pantes Tbk (ARGO) will make an additional Capital Without Pre-emptive Rights (PMTHMETD) or private placement of 2.83 billion shares with a nominal value of IDR 500 per unit on Friday (7/7/2023). Referring to the complete IDX information on Tuesday (11/7/2023), the number of private placements is equivalent to 89.43% of the total issued and fully paid shares of the Company. Private Placement is carried out through the conversion of debt into shares. The issuance price for ARGO's private placement was IDR 570 so that the textile issuer received additional capital of IDR 1.61 trillion. Meanwhile, the amount of ARGO's debt to affiliated creditors who have agreed to settle the debt is IDR 1.61 trillion as of December 31, 2022.

The debt will be closed into the Company's shares. Among the names of the creditors are PT Ragam Logam, PT Argo Manunggal Land Development, PT Argo Manunggal Triasta, PT Kukuh Manunggal Propertindo, Trevor Global Ltd, PT Lawe Adyaprima Spinning Mills and PT Daya Manunggal.

"These companies have affiliated relationships, namely they have the same controlling shareholder as the company," said the director of ARGO.

The implementation of the Private Placement has approved the shareholders at ARGO's extraordinary general meeting of shareholders (EGMS) which was held on 19 June 2023.

"Implementation of PMTHMETD in order to improve the company's financial position," he added.

As a result of the implementation of this Private Placement, public ownership of shares will be diluted. So ARGO said it would take steps to increase the number of free float shares in the community.

Until now, ARGO shares are at the level of IDR 486 per share. This figure did not move or stagnate from the price of ARGO at the close of trading yesterday. ARGO has a market capitalization of IDR 163.08 billion.