Jakarta, CNBC Indonesia – The world of the capital market was again amazed by PT Bank Jago Tbk (ARTO), after being corrected for 2 trading days, Bank Jago shot up 7.34% to the price level of Rp 10,600 / unit.
In its current position with a market capitalization of Rp. 145 trillion, this makes Bank Jago the third market capitalization bank on the stock exchange, surpassing PT Bank Negara Indonesia Tbk (BBNI) which has a market capitalization of Rp. 117 trillion.
In fact, the market capitalization of ARTO is actually bigger than the largest startup in Indonesia, namely PT Aplikasi Karya Anak Bangsa, aka Gojek, which is said to have a market capitalization of US $ 10 billion or Rp 144 trillion assuming an exchange rate of Rp 14,400 / dollar.
The story of the rapid rise of Bank Jago or formerly still called Bank ArtoS began 2 years ago when Bank Artos was still controlled by the Arto Hardy family and its share price tended to stagnate in the area of Rp. 120 / unit to Rp. 140 / unit.
In mid-2019, ARTO’s share price went up insanely after Arto Hardy’s family, the controlling shareholder, released their share ownership to PT Metamorphosis Ekosistem Indonesia which was headed by senior banker Jerry Ng and Gojek investor Patrick Walujo through Wealth Track Technology.
The two new ARTO investors now control 51% of the bank’s shares with assets of Rp 1.7 trillion. The duo of seasoned bankers entered through a rights issue scheme where at that time ARTO issued 8: 1 HMETD at a price of Rp 139 / unit.
Early rumors circulating in the market said that ARTO would become Bank Gojek. The rumors were finally proven. Gojek through its financial wing, namely PT Dompet Anak Bangsa (Gopay), acquired 22% of ARTO shares with a transaction value of Rp 2.77 trillion. Together with Gopay, ARTO, which is designed to become a digital bank, is ready to increase financial inclusion in the country through technology.
Most recently, the endowment fund or Sovereign Wealth Fund (SWF) from Singapore GIC Private Limited will become a shareholder of PT Bank Jago Tbk (ARTO) through the Capital Increase scheme by Providing Pre-emptive Rights II aka rights issue where Bank Jago will again issue HMETD 180 : 579 at the price of Rp. 2,350 / unit.
GIC plans to spend up to Rp 3.15 trillion to execute the Preemptive Rights of 1.19 billion units.
The question that arises is, of course, how much profit will an investor make since the bank is still controlled by the Arto Hardy family? Well, here are the calculations.
If an investor enters ARTO’s shares at a price of IDR 130 / unit as much as 1,350 lots or IDR 17,550,000, now the investment value at the current price is IDR 1.43 billion. The initial investment value of IDR 17.55 million is equivalent to the price of the Honda Supra
However, it should be noted that this figure does not take into account the rights issue obtained by investors in both the first and second rights issue. If the investor in the first HMETD round is able to sell his rights, namely 10,800 ARTO-R pieces at a price of Rp. 750 / unit, he will get an additional profit of Rp. 810 million.
Whereas in the second round of RI, if the investor is able to sell his rights as much as 374 ARTO second round HMETD at a price of Rp. 9,000 then there will be additional funds of Rp. 336 million so that the investor’s total profit reaches Rp. 2.5 billion, equivalent to a luxury Porsche Panamera.
However, if the investor redeems all of the Preemptive Rights, the profit figures will be even crazier. With a capital of Rp. 870 million, the investor can get up to Rp. 13 billion.
CNBC INDONESIA RESEARCH TEAM
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