KOTA Stock Right Issue 2026: IDR 4.95 Trillion for 571 Ha Acquisition – What Does It Mean for Investors?

PT DMS Propertindo Tbk (KOTA) is preparing a major corporate action through a rights issue or First Capital Increase with Pre-emptive Rights (PMHMETD I). The company plans to issue up to 100 billion new Series B shares to raise funds of up to approximately IDR 4.95 trillion.

The funds will mainly be used to finance the acquisition of two companies, namely PT Art Design Indonesia (ADI) and PT Mandirinusa Graha Perkasa (MGP). The two transactions are valued at around IDR 4.4 trillion and will give KOTA access to a land bank of approximately 571 hectares in Surabaya and Maja, Banten.

For investors, the issue is not just about how much new assets will be added to KOTA's balance sheet. The scale of this rights issue is also very large because the new shares issued are equivalent to up to 90.46% of the issued and fully paid capital after PMHMETD I.

In other words, KOTA's expansion plan offers great potential for asset growth, but at the same time carries a significant dilution risk for existing shareholders.

Key Takeaways

• KOTA is preparing a rights issue of up to 100 billion Series B shares targeting funds of up to approximately IDR 4.95 trillion.
• Around IDR 4.4 trillion will be used to acquire 99.99% of ADI and MGP, providing access to approximately 571 hectares of land bank.
• New shares are equivalent to up to 90.46% of the capital after the rights issue, so existing shareholders who do not exercise their rights face significant dilution risk.
• The transaction plan still requires shareholder approval at the EGM scheduled for October 6, 2026.

KOTA 2026 Rights Issue Scheme

Under the PMHMETD I plan, KOTA will issue up to 100 billion new Series B shares with a nominal value of IDR 25 per share. This number of shares is equivalent to up to 90.46% of the issued and fully paid capital after the corporate action is completed.

KOTA targets to raise up to approximately IDR 4.95 trillion. This figure needs to be distinguished from the acquisition value because around IDR 4.4 trillion will be used to take over two land-owning companies, while the remaining approximately IDR 550 billion is set aside for working capital, operations, and business development.

The plan is also not yet fully final. KOTA still needs shareholder approval at the EGM scheduled for October 6, 2026.

This is important for investors because the rights issue exercise price and the trading schedule of the rights will be key factors in determining the impact of the corporate action on KOTA's stock price.

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What Will the KOTA Rights Issue Funds Be Used For?

Most of the rights issue funds will be used to acquire two companies from PT Michel Energi.

1. Acquisition of PT Art Design Indonesia

KOTA plans to buy 99.99% of PT Art Design Indonesia (ADI) for a transaction value of around IDR 1.2 trillion.

ADI owns approximately 23 hectares of land in Gunung Anyar, Surabaya. The land consists of 96 Building Use Rights (HGB) certificates and is planned to be part of the East Gate Surabaya integrated area development.

Potential uses include mixed-use areas such as apartments, shopping centres, hotels, offices, culinary zones, warehousing, logistics, and residential.

Thus, the ADI transaction is not just about adding land assets to KOTA, but also provides the company with a land base to develop various types of property projects.

2. Acquisition of PT Mandirinusa Graha Perkasa

A larger transaction is being made for PT Mandirinusa Graha Perkasa (MGP).

KOTA plans to acquire 99.99% of MGP for around IDR 3.2 trillion. MGP controls approximately 548 hectares of land in Maja, Lebak, Banten.

The land is planned for the development of the Green Maja City area, with potential uses including a self-contained city, residential areas, industry, logistics, warehousing, and commercial areas.

If both transactions are completed, the total land bank acquired by KOTA will reach approximately 571 hectares.

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Why Is KOTA's Rights Issue Drawing Investor Attention?

The scale of the transaction is the main reason this corporate action is attracting market attention.

Based on pro forma financial statements as of June 30, 2026, cited by several sources, KOTA's total assets are projected to increase from approximately IDR 1.91 trillion to IDR 7.46 trillion after the transaction.

In other words, the acquisition has the potential to significantly change the size of KOTA's balance sheet. However, an increase in assets does not automatically mean an increase in profits or share value.

The new land will provide greater economic value only if KOTA is able to develop, sell, or monetise these assets effectively. This is where execution risk becomes a key factor for investors to consider.

KOTA's 2026 Financial Performance Is Improving

KOTA's expansion plan comes as the company's financial performance shows improvement.

In the second quarter of 2026, KOTA's revenue was recorded at around IDR 33.68 billion, up 193% compared to IDR 11.49 billion in the same period the previous year.

Gross profit reached approximately IDR 25.82 billion. Meanwhile, operating profit reached IDR 12.69 billion, rebounding from an operating loss of IDR 1.70 billion in Q2 2025.

KOTA also recorded pre-tax profit of around IDR 23.94 billion and net profit of IDR 10.38 billion in that period.

On an annual basis, KOTA booked a net profit of approximately IDR 41.6 billion in 2025, reversing a net loss of IDR 18.1 billion in 2024. This improvement is one of the factors to consider when assessing KOTA's prospects after the expansion.

However, investors still need to look at the consistency of profits and cash flow. Expanding the land bank to 571 hectares requires significant capital, while the economic benefits are likely to materialise gradually.

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KOTA Stock Rose 25.47% After Rights Issue Announcement

The market gave a positive response to the rights issue announcement.

In the first trading session on Monday, August 31, 2026, KOTA shares jumped 25.47% to IDR 202 and hit the Upper Auto Rejection (ARA) limit.

Transaction value reached approximately IDR 581.83 billion, with volume of 3.06 billion shares and around 121 thousand transactions. KOTA even became one of the stocks with the largest trading activity in that session.

However, the price then failed to hold the IDR 202 level and moved around IDR 191. This indicates that positive sentiment from the corporate action does not automatically mean the upward trend will continue without a correction.

Investors also need to be cautious in reading the volume surge. Very fast price movements can increase volatility risk, especially in stocks that are in the spotlight due to a major corporate action.

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Impact of KOTA Rights Issue on Investors

1. Potential Addition of Assets and Land Bank

The acquisition of 571 hectares is a key catalyst for KOTA.

A large land bank can provide room for the company to develop projects in the long term. If area development proceeds as planned, these assets have the potential to generate revenue from property sales, area development, rentals, and other commercial activities.

However, their economic value greatly depends on location quality, legal land status, permits, market demand, and KOTA's ability to execute the projects.

2. Dilution Risk of 90.46%

This is the most significant risk of the KOTA rights issue.

The issuance of up to 100 billion new shares will be equivalent to up to 90.46% of the issued and fully paid capital after PMHMETD I.

If existing shareholders do not exercise their rights, their ownership percentage in KOTA will be significantly diluted.

Therefore, investors should not only look at KOTA's stock price before the rights issue. They should also pay attention to the rights issue exercise price, the HMETD ratio, the theoretical price after the ex-rights date, and the potential value of the rights received.

3. Larger Balance Sheet, But Not Directly Higher Profits

KOTA's assets are projected to increase significantly after the acquisition.

However, investors need to distinguish between asset growth and profit growth.

Land is an asset that can have significant value, but it takes time to develop and monetise. If projects run slowly, the increase in assets does not immediately generate comparable cash flow.

4. Future Capital Needs

Land acquisition is only the first step.

Developing the 571-hectare area requires investment in infrastructure, construction, marketing, permits, utilities, and various other operational needs.

This means investors need to pay attention to KOTA's funding sources after the acquisition. Additional capital requirements can affect the debt structure or potential future corporate actions.

5. Execution Risk

KOTA's business plan appears aggressive, but its realisation will take time.

Risks may arise from permits, property market conditions, consumer purchasing power, project uptake, construction costs, and management's ability to develop two areas with different characteristics.

Therefore, the value of 571 hectares should not be treated as a guarantee that KOTA's profits will soar.

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Is KOTA Stock Attractive to Buy?

The question of whether KOTA stock is attractive to buy cannot be answered solely from the price increase after the rights issue announcement.

For aggressive investors with a long-term horizon, the 571-hectare land bank expansion can be an attractive catalyst. The change in KOTA's asset scale and the development plans for Surabaya and Maja offer growth opportunities if management successfully executes the projects as planned.

However, investors must also consider the very large dilution risk.

If existing shareholders do not take up their rights, their ownership percentage can be significantly diluted. Additionally, KOTA's stock price, which moved sharply after the rights issue announcement, shows volatility that needs to be considered.

Thus, a more rational approach is to wait for final information regarding the exercise price, HMETD ratio, cum-right and ex-right schedule, and the final prospectus before making an investment decision.

Investors should also not use the 25.47% gain on August 31 as the sole reason to buy KOTA stock.

What Should Investors Monitor Next?

There are several important catalysts to watch after the KOTA rights issue announcement.

First, EGM approval. KOTA is scheduled to seek shareholder approval at the EGM on October 6, 2026.

Second, the rights issue exercise price. This price will determine how attractive the HMETD is compared to KOTA's stock price in the regular market.

Third, the HMETD ratio. Investors need to know how many new shares can be purchased based on the number of old shares held.

Fourth, fund usage. Investors should monitor whether the funds are actually used according to the acquisition plan and business development needs.

Fifth, the progress of the 571-hectare projects. The fundamental value of the expansion will ultimately be determined by KOTA's ability to convert the land bank into revenue and profit-generating projects.

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Conclusion

KOTA's 2026 rights issue is one of the largest corporate actions relative to the company's size. KOTA plans to issue up to 100 billion new Series B shares to raise funds of up to approximately IDR 4.95 trillion.

Around IDR 4.4 trillion will be used to acquire 99.99% of ADI and MGP. These two transactions will give KOTA access to approximately 571 hectares of land bank in Surabaya and Maja, Banten.

From an opportunity perspective, this action can enlarge assets, the land bank, and KOTA's business growth runway. Improving financial performance is also an additional catalyst.

However, investors must not ignore the risks. Maximum dilution of 90.46%, future capital needs, price volatility, and project execution risk are factors that will determine whether the expansion truly creates value for shareholders.

Since the EGM is still scheduled for October 6, 2026, investors should wait for final information on the structure and pricing of the rights issue before making a decision. In other words, the 571 hectares of land is potential, not automatic profit.

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KOTA Rights Issue FAQ

What is the KOTA rights issue?

The KOTA rights issue is the PMHMETD I plan of PT DMS Propertindo Tbk to issue up to 100 billion new Series B shares. The company targets to raise up to approximately IDR 4.95 trillion.

How much funds are targeted from the KOTA rights issue?

KOTA targets a maximum of approximately IDR 4.95 trillion. Around IDR 4.4 trillion will be used to finance the acquisitions of ADI and MGP, while the remaining approximately IDR 550 billion is allocated for working capital, operations, and business development.

What will the KOTA rights issue funds be used for?

The funds will mainly be used to acquire 99.99% of PT Art Design Indonesia for around IDR 1.2 trillion and 99.99% of PT Mandirinusa Graha Perkasa for around IDR 3.2 trillion. These two transactions provide access to approximately 571 hectares of land bank.

What is the potential dilution from the KOTA rights issue?

The new shares issued, up to 100 billion Series B shares, are equivalent to 90.46% of the issued and fully paid capital after PMHMETD I. Existing shareholders who do not exercise their rights may face very significant ownership dilution.

When will the KOTA rights issue be implemented?

The KOTA rights issue plan still requires shareholder approval. The EGM to seek approval for this corporate action is scheduled for October 6, 2026. The HMETD trading schedule and exercise price are subject to further official company information.

Is KOTA stock attractive to buy?

KOTA stock has catalysts such as the 571-hectare land bank expansion and increased asset scale. However, investors also face dilution risk of up to 90.46%, future capital needs, price volatility, and project execution risk. Therefore, the decision to buy KOTA stock needs to consider the rights issue exercise price and the final prospectus, not just the price increase after the corporate action announcement.