JAKARTA. PT Bank Victoria International Tbk (BVIC) plans to raise its capital sans the preemptive rights or known as a private placement. BVIC intends to issue 10% of its entire issued and paid-up capital at most in this corporate action.
In the information disclosure published on Indonesia Stock Exchange (IDX) last Friday (26/11), BVIC was reported to issue 953,815,298 shares of IDR 100 each. This private placement scheme still awaits the approval of the shareholder during the General Shareholders Meeting on November 30, 2021.
The company claimed that the upcoming private placement is one of the actions taken to meet the minimum core capital requirement, of which until September 30, 2021, BVIC only reported IDR 1.77 trillion. Meanwhile, the Financial Services Authority (OJK) regulation in POJK No.12/POJK/03/2020 regarding the Conventional Bank Consolidation states that banks’ core capital reaches at least IDR 2 trillion by the end of December 2021. The said core capital requirement needs to be met by December 31, 2021.
The management also explained that in addition to strengthening the capital structure, the private placement is also envisioned to increase the number of outstanding shares, thus subsequently elevating the company’s stock trading liquidity. “Besides improving financial condition, the private placement would either be conducted all at once or gradually within the next two years,” the management added.
Furthermore, the management confirmed that PT Victoria Investama Tbk (VICO), the controlling shareholder and affiliate of BVIC, which owns 43.59% of the shares, is set to take part in the upcoming corporate action. However, other investors to participate in this private placement have yet to be decided. (AM/ZH)