Jakarta. Cellular operator Smartfren Telecom (FREN) announced plans on Wednesday to conduct a rights issue, aiming to raise up to Rp 8.57 trillion ($545.8 million) in fresh capital.

As a subsidiary of the Sinar Mas Group, Smartfren intends to issue 171.46 billion series-D shares at an offered price of Rp 50 per share for its existing shareholders.

Shareholders are informed that for every 178 shares they own, they are entitled to acquire 75 new shares.

The rights issue is scheduled to take place at the Indonesia Stock Exchange from March 18 to 22, 2024. Shareholders will not be permitted to purchase the new shares outside this designated timeframe, the company said in a public filing.

Of the total proceeds, Smartfren plans to allocate Rp 5.48 trillion for debt and interest repayments, with the remaining amount earmarked for capital.

Global Nusa Data, a tech company holding a 23.79 percent stake in Smartfren, announced on Tuesday that it will waive its rights to participate in the rights issue. On the other hand, telecommunication company Bali Media Telekomunikasi, with a 9.81 percent stake, expressed its intention to exercise the rights to purchase new Smartfren shares in proportion to its existing stake.

Smartfren cautioned that existing shareholders who opt not to participate in the rights issue will experience a decline in their ownership percentage.