JAKARTA (TheInsiderStories) – Sovereign Wealth Fund from Singapore, GIC Private Ltd., will become a shareholder of PT Bank Jago Tbk (IDX: ARTO) through capital increase scheme, the management announced today. The investor plans to spend up to Rp3.15 trillion (US$223.40 million) to execute 1.19 billion units of new shares issues by the bank.
The prospectus states, the local lender will releases 3 billion new shares at an exercise price of Rp2,350 a unit. If all the shares absorbs, the digital bank will receive fresh funds of Rp7.05 trillion. It said, each 579 old shares will receive 160 new shares.
In this corporate action, PT Metamorfosis Ekosistem Indonesia (MEI), controlled by senior banker Jerry NG, has 1.13 billion rights but only to absorb 42.6 million shares with total amount of Rp100.11 billion. Next, GoPay (PT Dompet Karya Anak Bangsa), as the owner of 22.16 percent of Bank Jago shares, has rights 664.8 million shares and to absorb 560 million new rights for Rp1.32 trillion.
Then, Wealth Track Technology Ltd., as the owner of 13.35 percent of the company’ shares will only exercise 170 million rights with worth of Rp 339.5 billion. The investor controlled by businessman Patrick Waluyo, the founder of Northstar Group, did not execute its rights. The pre-emptive rights trading period and the exercised date is set on March 10 – 17.
Bank Jago was previously known as PT Bank Arto Indonesia Tbk owned by the Arto Hardy Family which was acquired by NG and Walujo. Last year, GoJek, announced has acquires 22.14 percent of the lender for Rp2.25 trillion (US$159.57 million). The deal is part of both’ long-term investment plan and strategic partnership to accelerates financial inclusion in Indonesia.
“Investing in Bank Jago is part of our long-term business strategy that will strengthen GoJek’ business growth,” said Andre Soelistyo, Co-CEO Gojek on Dec. 18, 2020.
The transaction involved PT Indo Capital Sekuritas, PT UOB Kay Hian Sekuritas,PT UBS Sekuritas as the seller while the buyers are PT Trimegah Sekuritas Indonesia Tbk (IDX: TRIM). The number shares was 19.56 million units. After the transaction, Bank Jago’ shares still controlled by Ng and Walujo with a total ownership of 51 percent, who also one of GoJek investors.
The lender was founded in 1992 under the name PT Bank Artos Indonesia. In 2020, the company name changed to Bank Jago as part of the transformation to become a digital bank. Both bought the bank from Hardy family on August 22, 2019 and made capital injection in December 2019.
Kharim Siregar, president director of Bank Jago, commented, “This in-depth collaboration will be the key to the growth of Indonesia’ digital economy.”
Indonesia is the fourth largest country in the world with an unbanked population. Fifty percent of the adult population or about 95 million peoples do not have bank accounts and more than 47 million adults do not have adequate access to credit, investment and insurance. While, the smartphone penetration in Indonesia reached 80 percent.
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