Jakarta, CNBC Indonesia – PT Bank MNC Internasional Tbk (BABP) or MNC Bank, a subsidiary of PT MNC Kapital Indonesia Tbk (BCAP) has received an Effective Statement from the Financial Services Authority (OJK) on August 31, 2021.
This effective statement is to carry out the issuance of new shares with Pre-emptive Rights (HMETD) or rights issue.
As for the owner of BABP, Hary Tanoe, through BCAP, decided to only absorb rights issue company amounting to Rp 200 billion.
Previously, BABP planned to increase capital through Pre-emptive Rights, targeting 14,234,614,922 Series B shares, with a ratio of 2:1 (two old shares will get one Preemptive Rights), a maximum of 33.33% of the total paid-up capital after the Pre-emptive Rights.
With the exercise price of the Preemptive Rights of Rp 318, BABP targets to raise fresh funds of up to Rp 4.5 trillion.
BABP management explained that 100% of the proceeds from the rights issue will be used for, first, to strengthen the capital structure of MNC Bank.
Second, expanding MNC Bank’s loan capacity and digital customer acquisition to support the company’s business growth.
Third, for the development of MotionBanking as an integrated digital service banking application.
New Investor
BABP management in an official statement revealed the reasons behind the absorption from the largest owner of BABP shares which was only Rp 200 billion.
According to management, there are strategic investors who will invest in BABP through: private placement, following the implementation of BABP’s Pre-emptive Rights (HMETD) which has been approved by the OJK. It’s just that it has not been disclosed who the strategic investors will enter.
Regarding the price of the rights issue, which is below the market price, it is considered that this will actually benefit shareholders.
“Retail investors are safe. In the BABP rights issue there is no standby buyer and BCAP will only take part of the remaining rights of no less than Rp200 billion, that’s because the rest is reserved for strategic investors,” said President Director of MNC Kapital Indonesia, Wito Mailoa, in an official statement. , Thursday (2/9/2021).
This was explained by Wito to answer questions from the media who asked about the information in the BABP prospectus.
In the prospectus, MNC Kapital Indonesia, owned by tycoon Hary Tanoe, as the main shareholder of MNC Bank will exercise its Pre-emptive Rights of not less than Rp 200 billion or equivalent to 628.93 million shares.
Furthermore, Wito is optimistic that the market will positively welcome the corporate action to implement the BABP Pre-emptive Rights, in which BCAP will absorb a portion of BABP’s shares. In addition, there are strategic investors who will enter BABP.
As is known, BABP plans to increase capital through Pre-emptive Rights, targeting 14,234,614,922 Series B shares, with a ratio of 2:1, a maximum of 33.33% of the total paid-up capital after the Pre-emptive Rights.
With the exercise price of the Preemptive Rights at Rp 318, the Post-Preemptive Price-to-Book Value (PBV) will be at 2.79x compared to the PBV of 7.41x at the close of yesterday’s trade.
Therefore, Wito believes that all the new shares to be issued by BABP will be absorbed.
Moreover, the price of the rights issue is below the current market price, making it profitable for investors.
“In fact, it benefits shareholders, because they can increase their ownership at a low price,” he said.
If shareholders do not increase their ownership, he continued, they can sell proof of rights to other parties.
“Whichever way it goes, both provide benefits to shareholders,” Wito said.
Meanwhile, the timeline for MNC Bank’s rights issue is as follows:
– August 31, effective statement from OJK
– September 10, record date
– September 14 -27, trading period
– September 29, end of payment of additional securities
– October 4, distribution
– October 4, refunds for unfulfilled securities.
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