Bank MNC Owned By Conglomerate Hary Tanoesoedibjo Aims For IDR 4.5 Trillion Jumbo Funds Through Right Issue

Illustration (Photo: Doc. Bank Indonesia)

JAKARTA – PT Bank MNC International Tbk. plans to conduct a rights issue by issuing 14.23 billion new shares or 33.33 percent of the capital on September 9.

Chief Operating Officer of Bank MNC Teddy Tee said that this corporate action will be held through a Pre-emptive Rights (HMETD) mechanism in a Limited Public Offering VIII (PUT VIII).

According to Teddy, the funds raised will be used to strengthen the company's capital structure.

"All BABP targets (Bank MNC stock code) are more optimal if they are supported by strong funding. Therefore, MNC Bank will issue Preemptive Rights”, he said on Monday, August 16.

Teddy added that this action would at the same time delusion a third of the shares held by shareholders. It was also explained that every 1 HMETD was given the right to buy 1 new share with an estimated price range of between IDR 280 to 320 per share.

Through this strategy, the business entity affiliated with the conglomerate Hary Tanoesoedibjo is believed to be able to reap fresh funds of IDR 4 trillion to 4.5 trillion.

Meanwhile, MNC Bank's Price to Book Value (PBV) will shift from 7.66 times to .78 times – 2.88 times after the rights issue.

To note, BABP PBV will be much cheaper than similar industries and is considered worthy to be collected. Bearing in mind, the stock prices of other digital category banks are still above BABP, so the potential for an increase in valuation is quite large.

"The collected funds will also be optimized to expand Bank MNC's loan capacity and customer acquisition to support the company's business growth", continued Teddy.

Meanwhile, an effective statement from the Financial Services Authority (OJK) regarding the issuance of new shares is expected to be issued on August 30, 2021. Then the recording date for shareholders who are entitled to participate in the rights issue is on September 9.

Then, the shares were released during the trading period from September 13 to September 24, 2021. This latest corporate action was previously approved by the company's Extraordinary General Meeting of Shareholders (EGMS) on June 9, 2021.

"Bank MNC hopes to upgrade to BUKU (business activity commercial bank) III after the rights issue", concluded Teddy.