Bank offers rights shares

Bank offers rights shares

JAKARTA (JP): Bank Bali, a private commercial bank listed on the Jakarta Stock Exchange, announced yesterday that it will offer more than 65 million rights shares and about 37 million warrants to its existing shareholders.

"The amount of the rights shares to be issued is about 35 percent of the bank's total shares, while the warrants offered will account for about 14 percent," Rudy Ramli, the bank's president, told reporters at his office here.

"We are aiming to generate funds to meet our capital requirements and to finance business expansions," Ramli said.

The executive said that the rights shares would be offered to existing shareholders through the capital markets here and in Surabaya, East Java, between July 17 and August 16.

He said that for every 20 existing shares, investors would be eligible to purchase seven rights shares at Rp 2,000 (about 90 U.S. cents) apiece and four warrants.

Each warrant, Ramli added, can be converted into one share with a nominal value of Rp 1,000 each at Rp 2,900 between Feb. 26, 1996 and Aug. 29, 2000.

"The warrants will be traded on the Jakarta and Surabaya stock exchanges from the day they are released until five working days before they mature," he said.

Bank Bali reported that, as of last December, its assets reached Rp 4.98 trillion ($2.23 billion). It gained a net profit of Rp 72.43 billion in 1994.

The bank's annual report shows that its loan to deposit ratio last year reached 86.78 percent, while its capital adequacy ratio was 10.21 percent.(hdj)