Energi Mega Persada Readies $259M Rights Issue to Power Gas Expansion

JAKARTA, Investortrust.id — Upstream oil and gas producer PT Energi Mega Persada Tbk (ENRG), a core resource vehicle of the Bakrie Group, is preparing to launch a large-scale equity call of Rp 4.12 trillion ($258.96 million) to bankroll oil and gas field developments, pipeline infrastructure, and enhanced recovery projects.

Under the terms of its fourth capital increase with preemptive rights (PMHMETD IV), the Jakarta-headquartered explorer will offer up to 13,282,271,875 new Series B shares from portfolio stock, representing 33.33% of the company's enlarged paid-up capital upon completion.

The rights are offered at a nominal value of Rp 100 per share and an execution price of Rp 310 ($0.019) per share, according to the abridged prospectus published by the company.

As Indonesia confronts long-term domestic crude output declines and accelerates natural gas utilization to support national industrialization, independent domestic upstream operators face increasing pressure to fund intensive capital expenditure cycles. Energi Mega Persada's multi-trillion-rupiah capital raise equips its operating units with necessary exploration and drilling capital to expand gas processing and delivery infrastructure without taking on expensive bank debt during a period of high global interest rates.

The capital expansion is structured around a two-for-one entitlement ratio. Existing shareholders registered on the company's list of shareholders by 4:00 PM Jakarta time on Oct. 6, 2026, will receive one subscription right for every two shares held. Each right entitles the investor to purchase one new Series B share at the execution price of Rp 310, payable in full upon application. The rights will trade both on and off the Indonesia Stock Exchange from Oct. 8 through Oct. 21, 2026.

Controlling Shareholder and Standby Buyer Arrangements

The offering involves significant internal realignment among major shareholders. Controlling shareholder PT Shima Global Kapital, which commands 4.66 billion shares or a 17.55% stake, confirmed via a formal notice on Aug. 28, 2026, that it will not subscribe to its entitlement of 2.33 billion rights, instead transferring all of its rights to an affiliate, PT Bakrie Kalila Investment (BKI).

BKI, which currently holds 946.87 million shares or a 3.56% stake, has committed to exercising its own 473.44 million rights alongside the entire 2.33 billion rights reassigned from Shima. The total execution of 2.80 billion rights requires a capital deployment of Rp 869.29 billion ($54.67 million), fully verified through fund sufficiency confirmations across four commercial lenders totaling Rp 1.19 trillion.

Simultaneously, fellow shareholder PT Bakrie Capital Indonesia (BCI), holding a 4.18% stake, will execute its full direct allocation of 554.78 million rights valued at Rp 171.98 billion ($10.82 million).

In the event that public shareholders decline their allocations, BKI and BCI will serve as joint standby buyers, pledging to absorb up to 9.92 billion unexercised shares valued at up to Rp 3.08 trillion ($193.71 million). BCI has established available financing letters totaling Rp 3.11 trillion from state-owned lenders to underwrite its commitment to absorb up to 8.87 billion remaining shares.

Under a joint shareholder control pact signed on Sept. 22, 2026, the parties agreed that even if BCI's standby purchases make it the single largest equity holder with up to 26.45% of total enlarged capital, operational control will remain with Shima and BKI. BCI will formally waive management participation, agree not to nominate board members, and align all voting rights with Shima and BKI. Public investors who decline to subscribe will face maximum ownership dilution of up to 33.33%.

Capital Allocation Focused on Gas Production

Net proceeds from the rights issue will be directed as intercompany loans across the group's upstream operating subsidiaries. The lion's share of the funding, approximately 54.83%, is earmarked for EMP Bentu to finance the drilling of nine development wells across the CEN and Segat fields, alongside the construction of gas gathering pipeline corridors from CEN to central processing facilities at Segat.

Another 13.49% of the proceeds will be loaned to operating unit ITA to execute a pilot Enhanced Oil Recovery program in the Melibur field, drill four development wells in the MSTB field, and overhaul aging gathering pipelines. An additional 16.13% is allocated to EMP Inc for gas pipeline construction and general working capital, while EMP ER will receive 5.38% to drill two development wells.

The remainder of the funds will be deployed across exploration drilling by EMP EG, scheduled maintenance of the Gandini Floating Storage and Offloading vessel under BSSL, and the development of a compressed natural gas processing complex by ENI.

Independent auditor KAP Achsin Handoko Tomo noted that as of March 31, 2026, the company maintained total consolidated liabilities of $1.02 billion, comprising $463.42 million in short-term liabilities and $560.35 million in long-term obligations, with total rupiah bond debt standing at approximately $97.06 million. The capital injection provides substantial balance-sheet equity to support the group's production commitments across its 13 upstream acreage holdings in Indonesia and Mozambique.