Bank Niaga plans rights issue

Bank Niaga plans rights issue

JAKARTA (JP): Publicly-listed Bank Niaga will issue rights
shares to increase its paid-up capital from Rp 157.57 billion
(US$68.2 million) to Rp 189.09 billion in November, the company
said in a statement here yesterday.

The statement said that holders of five old shares on Nov. 11
will be eligible for one new share at the price of Rp 3,300.

The company's shares -- with a nominal price of Rp 1,000 per
share -- closed at Rp 6,125 on the Jakarta Stock Exchange on
Monday.

The bank's authorized capital will remain unchanged at Rp 280
billion.

According to the statement, 25 percent of the proceeds from
the rights issue will be used to develop the bank's technology in
order to support its expanding business operations, while the
other 75 percent will be used to finance its credits.

It said that holders of the bank's convertible bonds will also
be eligible when they convert their bonds into shares on Oct. 24.

"PT BZW Niaga Securities (the underwriter of the rights issue)
has stated its willingness to buy all rights shares not taken up
by shareholders," said the statement.

Bank Niaga's total assets were Rp 6.8 trillion as of June,
compared to Rp 5.4 trillion the same month last year. Its net
profits jumped to Rp 43.48 billion in the first half of this year
from Rp 27.95 billion in the same period last year. (13)