JAKARTA (TheInsiderStories) – A regional bank, PT Bank Pembangunan Daerah Banten Tbk (IDX: BEKS) has set the rights issue price Rp50 a share and plans to releases 60.82 billion Series C shares or equivalent to 90.46 percent of the total issued and fully paid shares in the company, the prospectus showed. The has the potential to raise Rp3.04 trillion ($215.67 million) from the corporate action.
President director of the issuer, Fahmi Bagus Mahesa, explained if the plan goes well, the company will accelerate its performance growth more quickly, which was under pressure in years. In the first half of 2020, the lender recorded loss of Rp99.98 billion. With the fresh funds, its expected its capital will getting better after get injection Rp1.55 trillion from its parent.
He also emphasized that this rights issue was also intended to comply the Financial Services Authority Regulation Number 12 of 2020 concerning Commercial Bank Consolidation. The regulation stated that all domestic banks are required to have a minimum core capital of Rp3 trillion.
The management wants to carried out the obligation in stages. The capital is targeting to reach of Rp1 trillion in 2020, Rp2 trillion at the end of 2021, and reaching the requirement in 2022. Before run the rights issue program, on Dec. 10, the issuer has finalize the reverse stock split program with 10: 1 for Series A and Series B Shares.
The corporate action was carried out by the issuer to accommodates the Banten provincial government through PT Banten Global Development capital injection of Rp1.55 trillion. The reverse stock is in accordance with the Indonesian Stock Exchange regulation for the listing of additional shares from the rights issue. Currently, the nominal price of Series C shares Rp18 per share.
The shareholders of former PT Bank Pundi are Banten Global 51 percent and others hold by public. The company has appointed PT Bahana Sekuritas for the corporate action. Formerly Bank Banten was named PT Executive International Bank and established on Sept. 11, 1992.
Then the bank began operating as a commercial bank on August 9, 1993. Then, in 1996 changed to PT Bank Executive International. When the condition of the bank collapsed, Bank Indonesia asked the owner of the Executive Bank, Widjaja’ Family, to strengthen the capital structure.
Recapital Group, a company owned by Sandiaga Salahuddin Uno and Rosan P. Roeslani replacing the Widjaja Family position as controller at the bank. The company’ name was changed to Bank Pundi. After that, in 2016 the bank was sold to the Banten provincial government and changed its name to Bank Banten.
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