Mandala Multifinance Tbk (MFIN), a consumer financing company, plans to distribute bonus shares worth IDR 117.5 billion.
Mahrus, Corporate Secretary of MFIN, said that the corporate action is intended as a means to adjust its paid-up capital to at least IDR 250 billion. This adjustment follows the Financial Services Authority Regulation (POJK) Article 72 regarding business licenses and the institutional status of financing and sharia financing companies.
The bonus shares that will be distributed by the company will be taken out from MFIN’s earnings, which were recorded at IDR 3.29 trillion as of December 31, 2024.
“The board of directors proposes a bonus share distribution taken out of the capitalisation of earnings worth IDR 117.5 billion,” said Mahrus.
The management of MFIN will hold Extraordinary General Meeting of Shareholders on October 14, 2024. The distribution of these bonus shares is scheduled to take place on Novemebr 14, 2024, with ratio set to 1:1, meaning that one share will grant the holder one bonus share. (KR/ZH)