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Bank Neo Commerce seeks to raise Rp 2.5 trillion with rights issue
The digital bank is raising funds to meet minimum capital requirements set by the Financial Services Authority (OJK).
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ublicly listed Bank Neo Commerce (BNC) is planning a rights issue to raise trillions of rupiah as the digital bank seeks to meet the minimum capital requirement from the Financial Services Authority (OJK).
BNC, which transitioned into a digital bank in 2019, is looking to raise Rp 2.5 trillion (US$175.2 million) by issuing 1.92 million new shares at Rp 1,300 apiece.
President director Tjandra Gunawan said this corporate action was meant in part to meet the minimum capital requirements from the OJK at Rp 2 trillion by the end of this year and Rp 3 trillion at the end of 2022.
Read also: New capital rules to spur consolidation
The bank’s total equity was Rp 1.1 trillion as of September this year, according to its latest financial statement.
“This [rights issue] reflects our seriousness and aims at accelerating the transformation to be the leading digital bank in Indonesia,” Tjandra was quoted in a press release as saying on Monday.
BNC joins other banks in issuing new shares at the latter part of this year as they seek additional funds partly for similar purposes. Publicly listed Bank KB Bukopin, for example, is seeking to raise Rp 7.04 trillion by issuing 35.21 million new shares.
Read also: Bank KB Bukopin seeks to raise Rp 7.04t through rights issue
BNC is planning to use the funds raised through the rights issue for, among other things, investing in information technology, supporting operations such as employee development and recruitment and promotions.
The bank, which claims to have the largest number of customers among Indonesia's digital banks, is also planning to use the funds to further develop its apps, such as by adding new features.
The bank’s shares, traded under the ticker BBYB at the Indonesia Stock Exchange (IDX), declined by 4.19 percent to Rp 2,060 apiece on Tuesday afternoon from the previous close.
The OJK launched in August three regulations largely aimed at providing the legal basis for digital banking as the COVID-19 pandemic accelerates the adoption of online services.
