JAKARTA (TheInsiderStories)—PT Bank Bukopin Tbk (BBKP) seeks to raise Rp1.91 trillion (US$136.5 million) from a rights issue. PT Bosowa Corporindo as the main shareholder will act as a standby buyer.
Shareholders with 10 shares earn the rights for three new shares. Existing shareholders who did not execute their rights in this rights issue will see their stake diluted by 30 per cent.
The rights issue will be distributed to Bank Bukopin’s shareholders on June 27, 2018. Bukopin will use the proceeds from the rights issue to increase its capital adequacy ratio (CAR) and business development.
Bosowa will exercise its rights to maintain the 30 per cent ownership in Bank Bukopon. However, should other existing shareholders did not exercise their rights, Bosowa will see its ownership in Bukopin rise to 35.78 per cent post the rights issue.
Bosowa said earlier it is interested to raise its stakes in the bank through rights issue scheme.
Bukopin’s remaining shareholders are Korperindo with 18.09 percent, followed by the government with 11.43 percent and the public with 40.46 percent.
Bukopin posted poor performance last year, with profit was down 54 percent to Rp112.37 billion (US$8.14 million) from Rp248.95 billion in 2016, driven by high non-performing loans. The bank’s non-performing loans (NPL) gross increase to 8.54 percent from 3.77 percent during the period.
Bukopin booked a net profit of Rp126.7 billion in the first quarter of 2018, a 10 per cent rise from the first quarter of 2017. In addition, Bukopin booked a reserve of Rp 155 billion and the net NPL ratio of 4.47 per cent by March 31, 2018.
The Bukopin’s loan to deposit ratio (LDR) is around 79 per cent and the third party funds reached Rp90.1 trillion by the end of Q1/2018. The company’s asset position reached Rp107.7 trillion, an increase of Rp1.3 trillion compared to the position by end of 2017.