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)