JAKARTA. PT Bank Victoria International Tbk (BVIC) will hold a rights issue, targeting to collect IDR 1 trillion of fresh funds in total. Said amount will be utilised to meet the minimum core capital requirement as the Financial Services Authority (OJK) dictates.
In the short prospectus issued last week, BVIC said it would issue shares as much as 40.17% of its issued and paid-up capital, amounting to IDR 7.04 billion new shares of IDR 100 each. The upcoming rights issue is included in the more extensive program of the sixth capital increase with preemptive rights issuance or rights issue VI. The company has set the offering price to IDR 140-170 per share, giving BVIC a chance to secure IDR 985.91 billion to IDR 1.19 trillion.
The prospectus also mentioned that the purpose of this corporate action is to strengthen the capital structure, referring to the fulfilment of the minimum core capital. The proceed gained from the rights issue, after paying all costs related to said corporate action, will be entirely stored as the working capital through business development in the form of credit expansion. For reference, BVIC’s authorised capital had reached IDR 2.04 trillion in March 2022.
Every shareholder with at least 137 shares, whose names have been recorded in the Shareholders List of Bank Victoria by the closing bell in Indonesia Stock Exchange trading on August 3, 2022, will be eligible to receive 92 preemptive rights. Then, each right will grant the holder to license to buy one new share, which must be paid in full while placing the order.
PT Victoria Investama Tbk (VICO) sets out to be the standby buyer in this future rights issue. As the controlling shareholder with 39.37% ownership over VICO’s shares, as last reported on June 8, 2022, declares its intention to exercise all rights transferred to the company worth 2.77 billion shares. (AM/ZH)