Bank Maspion plans to raise Rp 201 billion ($15.4 million) in a preemptive rights issue in order to elevate the Surabaya-based mid-sized lender to the next tier of banking business, making it eligible to conduct more banking services. (JG screenshot)
Bank Maspion Set for Next Level Banking With October Rights Issue
BY :SARAH YUNIARNI
OCTOBER 04, 2016
Jakarta. Bank Maspion plans to raise Rp 201 billion ($15.4 million) in a preemptive rights issue in order to elevate the Surabaya-based mid-sized lender to the next tier of banking business, making it eligible to conduct more banking services.
According to the prospectus released on Tuesday (04/10), the company plans to sell 592 million new shares, or 13 percent of its enlarged capital, at Rp 340 per share. Any shareholder who owns 65 shares by Oct. 12, is eligible to buy 10 new shares.
Alim Investindo, the holding company of household appliance local giant Maspion and the majority stakeholder of Bank Maspion, will act as a standby buyer.
Bank Maspion has been aspired to increase its core capital — which stood at Rp 839 billion at the end of June — to above Rp 1 trillion. That is the minimum threshold demanded by the Financial Services Authority (OJK) for any lender wishing to become a second-tier bank, or BUKU 2, allowing it to expand its foreign exchange financing, electronic banking, and or establishing financial services subsidiaries.
The lender is also in need of fresh liquidity after its loans rose by 27 percent in the six-month period from a year ago, pushing its loan-to-deposit rate up to 94.8 percent at the end of June from 78.9 percent a year earlier. This exceeds the 94 percent cap required by the central bank, Bank Indonesia.
Bank Maspion nearly tripled its net income to Rp 32.6 billion in the first semester this year, compared to Rp 11.3 billion in same period last year. The lender's net interest income rose to Rp 265.8 billion, up 13 percent from last year.
Established in 1990, the lender is part of tycoon Alim Markus's Maspion Group, a conglomerate with business in electronics and home appliance manufacturing, property and industrial estate development, banking, retail, education, hotels and entertainment centers.
Bank Maspion's share price dropped 5.7 percent to Rp 330 a piece in Tuesday's trade at the Indonesia Stock Exchange (IDX).