Bank Neo Commerce (BBYB) Rights Issue Has the Potential to Raise Funds of IDR 1.23 T

BANKING - JAKARTA. PT Bank Neo Commerce Tbk's (BBYB) capital increase through a rights issue, which will issue up to 5 billion new shares this year, has reportedly attracted the attention of new investors looking to participate.

BNC Business Director Aditya Windarwo directly conveyed this. However, he did not disclose the names of the investing companies on their radar.

"I can't say who the investors are, but they are still regional (domestic)," he told Kontan during a Media Group Interview in Jakarta on Wednesday (8/5).

His party estimates that with the issuance of up to 5 billion new shares this year, they can raise funds of around IDR 600 billion to IDR 800 billion, and could even reach IDR 1.23 trillion.

Before that, Aditya mentioned the estimated amount of funds from the rights issue based on the current average price of BBYB shares. However, they are still calculating the historical weighted share price from six months or three months ago to determine the execution price of their shares.

"The average weighted price from the history of 6 months or 3 months, then we can determine what the price will be like, but if we look at the current share price it could be around IDR 600 billion-IDR 800 billion," said Aditya.

The bank issuer with the stock code BBYB has not yet determined the execution price of the rights issue. However, if the assumption of the execution price is made at the closing price of trading on Wednesday (8/5) at the level of IDR 246 per share, then BBYB has the potential to raise funds to IDR1.23 trillion in this corporate action.

"We are also still looking at the movement of share prices for the next three weeks, if the price rises it could be IDR 1 trillion," said Aditya.

Previously, the bank with the stock code BBYB had postponed the implementation of the rights issue scheduled for November - December last year. In response to this, Aditya explained that the postponement of the rights issue was a decision of the company and shareholders after conducting a deep market analysis.

Understandably, considering that the capital condition is not an urgent matter for BNC, Aditya said that the postponement was appropriate to achieve optimal results.

"The unfavorable market conditions are the reason we postponed, and if forced, the results will not be optimal. This is also our strategy to strengthen capital optimally," he said.

The proceeds from the rights issue will be allocated for credit expansion capital by 40%, for operational activities by 45%, and for the development of information technology.

In terms of credit distribution, BNC will be one step ahead compared to other digital banks in the industry, by starting to focus on targeting the commercial and corporate credit segment.

"Digital Banks are still focused on retail, BNC itself sees opportunities and great potential in the commercial and corporate segment and is now starting to focus on targeting the segment.

The controlling shareholder who is ready to become a standby buyer in this rights issue is PT Akulaku Silver Indonesia, which currently holds 27.32% of BBYB shares.

In addition to Akulaku, there is Rockcore Financial Technology Co. Ltd which holds about 6.12% of BBYB shares and will also take all of its rights in this rights issue.

If the new shares offered in this rights issue are not all taken up or purchased by the Company's shareholders, the remainder will be allocated to other rights issue holders who place larger orders than their rights on a proportional basis based on the number of rights issues that have been carried out by each shareholder who requests additional securities based on the Execution Price.

Here is the estimated schedule of the Preemptive Rights (HMETD) or BBYB rights issue:

- Effective Date: June 10, 2024

- Recording Date for Shareholders entitled to HMETD: June 24, 2024

- HMETD Distribution Date: June 25, 2024

- HMETD Listing Date on BEI: June 26, 2024

- HMETD Trading Period: June 26 - July 2, 2024