According to an information disclosure released in the Indonesia Stock Exchange (IDX), BRI Agro will issue 5 billion shares or equivalent to 27.1 per cent of the fully paid capital. The offered stock price is offered at Rp100 per share.
“Will be offered through a private placement via right issue on September 12, 2018,” President Director of BRI Agro Agus Noorsanto on Wednesday (18/07) said, as quoted by Kontan.
PT Bank Rakyat Indonesia Tbk (IDX: BBRI) hold a controlling share in BRI Agro with 87.19 per cent, while another 6.31 per cent and 6.51 per cent own by Dana Pensiun Perkebunan and public, respectively.
BRI will exercise its rights as much as Rp1 trillion at a price of Rp400 per share, according to the company’s statement on July 13, 2018. While the rest will be offered through the market mechanism.
Each 1,000 share owner will get 271 right issue at an exercise price of Rp400. Existing shareholders will see ownership dilluted by 21.32% if not exercising their rights.
The company plans to use the fund gained from the right issue to strengthen the capital structure and to boost loan growth. The company targets to enter BUKU III bank category that has a core capital of at least Rp5 trillion.
The firm expects to receive approval from the Financial Service Authority (FSA) by September 12, 2018. Then, the right issue is scheduled for 14-20 September 2018, while the implementation of the private placement via the right issue report to FSA is scheduled for October 24, 2018.
BRI Agro booked Rp110.77 million in net income in Jan-May, a 119.6 per cent up (year on year). In addition, the firm recorded Rp12.57 trillion of loan disbursement, a 45.75 per cent up from Rp8.63 trillion in the same period last year.
Furthermore, the company’s asset increased 43.91 per cent (year on year) to Rp18.16 trillion. The third-party funds also increased 74.59 per cent to Rp18.24 trillion from Rp10.44 trillion in May 2017.
BRI Agro targets 34 per cent of loan disbursement growth this year. In addition, the firm targets 32 per cent of third-party funds growth this year to Rp17.5 trillion, from Rp12.4 trillion in 2017.