PT MNC Studios International Tbk (MSIN) plans to increase capital by issuing as many as 312,120 million shares or the equivalent of 3% of the paid-up and issued capital.

According to a brief prospectus published on Wednesday (7/4), the company would issue the shares after a stock split of Rp 50 per share is carried out.

Therefore, the total amount of additional capital after the stock split will be a maximum of 1,040,400,000 shares or 10% of the total issued and fully paid-up shares in the company.

The total amount consists of the additional capital as approved in the EGMS on 18 August 2020 in a maximum amount of 728,280,000 shares with a nominal value of Rp50 and a maximum additional capital of 312,120,000 shares with a nominal value of Rp50.

The plan to increase capital by 3% will improve the company's capital structure. After the corporate actions, the company's current ratio will rise to 302% from 292%, the ratio of liabilities to assets will fall to 34% from 35%, and the ratio of liabilities to equity will be less to 51% from 53%.

The company will use funds received from the implementation of additional capital to improve the company's capital and financial structure, as well as support, increased productivity, and quality of sustainable operations, including but not limited to the production house and advertising businesses, by increasing the amount of production of content on the OTT and FTA TV platforms. Particularly original and animated content and digital apps, namely Klaklik and AdMediate, strengthen digital revenue and support online sales.