BRI's Rights Issue Oversubscribed, Raises IDR 95.9 Trillion in Funding

Rhea-AI Summary

PT Bank Rakyat Indonesia (Persero) Tbk has successfully raised IDR 95.9 trillion from a rights issue of IDR 28.2 billion for the establishment of an Ultra Micro Holding, achieving the largest rights issue in Southeast Asia and ranked third in Asia. The rights issue was oversubscribed, reflecting strong investor confidence. BRI aims to support ultra-micro enterprises, contributing positively to Indonesia's economy, which heavily relies on micro, small, and medium enterprises (MSMEs). Stakeholders maintain over 40% ownership, affirming their trust in BRI's vision for financial inclusion and growth.

Positive

• Raised IDR 95.9 trillion in a rights issue, underscoring strong investor confidence.
• Oversubscribed rights issue, marking the largest in Southeast Asia and third in Asia.
• Support for ultra-micro enterprises, contributing positively to Indonesia's economy.

Negative

• None.

JAKARTA, Indonesia, Oct. 1, 2021 /PRNewswire/ -- PT Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) has raised IDR 95.9 trillion from the issuance of IDR 28.2 billion rights issue for Ultra Micro Holding's establishment. The figure has shown a great achievement with oversubscribed rights issue, as stated by BRI's President Director, Sunarso, at the Indonesia Stock Exchange Opening Bell event, September 29.

Also present at the event were Indonesian State-Owned Enterprise (SOEs) Minister, Erick Thohir; SOEs Deputy Minister II, Kartika Wirdjoatmodjo; OJK Capital Market Supervision's Chief Executive, Hoesen; IDX President Director, Inarno Djajadi; BRI Vice President Director and Head of PMO (Project Management Office), Catur Budi Harto; and the President Director of Pegadaian, Koeswiyoto.

"This has been an historic achievement as BRI's rights issue now becomes the largest in Southeast Asia, ranked third in Asia, and ranked seventh worldwide, providing more investment opportunities for capital market in Indonesia," said Sunarso.

The Indonesia's SOEs Minister, Erick Thohir, also praised BRI for the outstanding result during this turbulence situation. "MSMEs now contribute to around 60% of economy in Indonesia. Through the establishment of Ultra Micro Holding (UMi), we will help ultra-micro players with easier access to funds, assistance, and access to scale up," said Thohir.  

With this rights issue's result, shareholders can maintain the ownership of above 40%, that aligns to BRI's target. "This also reflects their confidence in our vision to provide financial inclusion, while securing growth in microsegments to create more values for all shareholders. Along with UMi, BRI will bring millions of ultra-micro business players to scale up and make positive contributions to stakeholders and the national economy," added Sunarso.

OJK Capital Market Supervision's Chief Executive, Hoesen, pointed how the rights issue's result has answered widespread doubts from many investors about the economic growth in Indonesia. "In the future, our economy will rely more on MSMEs growth. As most Indonesian people focus on everyday life to make a living, we at OJK are confident that these MSME sectors will continue to grow," said Hoesen.

Since first entered LQ45 in 2005, BRI has garnered the largest market capitalization in Indonesia, with the most active stocks traded based on value. "With outstanding performances and potential growth with UMi, BRI shares can certainly increase new optimism from investors," concluded IDX President Director, Inarno Djajadi.

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What was the amount raised by PT Bank Rakyat Indonesia in their latest rights issue?

PT Bank Rakyat Indonesia raised IDR 95.9 trillion from their recent rights issue.

How significant was the rights issue for PT Bank Rakyat Indonesia?

The rights issue was the largest in Southeast Asia, ranked third in Asia and seventh worldwide.

What is the purpose of the funds raised by PT Bank Rakyat Indonesia?

The funds are aimed at establishing Ultra Micro Holding to support ultra-micro enterprises.

What impact does the rights issue have on shareholders' ownership?

Shareholders can maintain ownership above 40%, reflecting confidence in BRI's vision.

Who praised the outstanding results of PT Bank Rakyat Indonesia's rights issue?

Indonesian SOEs Minister Erick Thohir praised BRI for their achievement during challenging times.