JAKARTA. PT Bank Neo Commerce Tbk (BBYB), a bank focusing on the digital bank business, has secured an approval from its Extraordinary General Meeting of Shareholders (EGMS) to proceed with its plan to increase capital with preemptive rights, also known as a rights issue.

Said meeting was held on August 8, 2023. In this meeting, the shareholders agreed upon BBYB's plan to issue 5 billion new shares at most, with a face value of IDR 10 each. 

The ratio and the offering price of this upcoming rights issue is still under internal discussion. However, referring to its current price of IDR 392 per share, the company presumably will raise fresh funds of up to IDR 1.96 trillion from this corporate action.

In general, BBYB plans to allocate the rights issue proceeds to support its credit expansion. Furthermore, it will also utilise a portion of the proceeds for operational activities and information and technology development.

According to IDNFinancials data, BBYB had previously set up a plan for a capital raise without preemptive rights or private placement. The number offered in this corporate action reaches 1.2 billion shares.

The private placement plan was supposedly discussed during the last EGMS on August 8. However, as the plan is still under internal managerial discussion, the shareholders could not yet to make a decision regarding this private placement plan. (KR/ZH)