JAKARTA (TheInsiderStories) – A private lender, PT Bank Mayapada International Tbk (IDX: MAYA), announced an exercise price for the rights issue at Rp400 (US$0.03) a shares. The company has announced to offers as much as 4.99 billion series B shares and has the potential to raises Rp1.99 trillion.
Based on the public information, the issuer said every 5,000 old shares is entitled to 3,659 pre-emptive rights and has the right to buy one new share at a price of Rp400. PT Mayapada Karunia as the main shareholder, stated that it would take part in this limited public offering by purchasing at least 1.32 billion shares.
No further information on the other shareholders like Cathay Life Insurance Co. Ltd. (37.33 percent), Galasco Investments Ltd., (12.67 percent), Dato’ Sri Tahir (4.56 percent) and Unity Rise Ltd (7.31 percent). The remaining shares owned by public amounted to 7.21 percent.
Recently, Taiwanese financial company through its subsidiary, Cathay Life Insurance Co. Ltd., reportedly planned to enlarge its ownership in the bank built by local tycoon, Dato ‘Sri Tahir toabove 40 percent.
The management said, all rights issue funds, will be used to strengthen the capital structure. Earlier, Tahir has injected capital of Rp1 trillion in the bank. In details, the capital injection of Rp252,087 billion on April 28 and Rp750 billion on July 1, 2020.
“The placement of these funds strengthens the capital aspect and is part of the company’s phased plan to conduct a limited public offering XIII in 2020 totaling Rp.4.5 trillion,” wrote by the management.
With the fresh funding, the capital of Bank Mayapada rose to Rp20.3 trillion. Earlier, Tahir has injected capital Rp1.00 trillion in 2016, same amount in the 2017, then worth of Rp2.00 trillion in 2018, and another Rp1.00 trillion in 2019. It said, the placement of funds could be converted into a capital deposit of Rp252.08 billion.
Beyond that, the issuer will get an additional capital of Rp750 billion, bringing the total capital injected to Rp4.5 trillion from rights issue. Tahir also have plans to attract strategic partner in the bank.
“I have a big commitment to Bank Mayapada, and because of that I continue to deposit capital,” said Tahir recently.
The issuer was formed on Sept. 7, 1989 and then began the operating commercially on March 16, 1990 and in the same month officially became a commercial bank, followed by the acquisition of a license from Bank Indonesia as a foreign exchange bank in 1993.
In 1995 the the lender changed the name became Bank Mayapada International and in 1997 took the initiative to go public at Indonesia Stock Exchange.
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