Indovest to issue rights

JAKARTA (JP): Publicly-listed Bank Indovest plans to issue right shares to increase its paid-up capital to at least Rp 100 billion (US$41.06 million) by 1999 from Rp 76.6 billion now, the bank's president Enap Surjatman said yesterday.

Speaking after the bank's annual shareholders meeting, Enap said, as a listed bank, Bank Indovest could no longer ask its shareholders to inject fresh funds.

"Therefore, a rights issue will be the best way for us to increase capital to the minimum Rp 100 billion in 1999 as required of publicly listed foreign exchange banks by the central bank," Enap said.

But Enap did not disclose when the company would make the rights issue, saying that his party was still considering the right time to do it.

"At the moment, as you know, the market is not so good for the rights issue," Enap said.

He said the bank would also increase its capital through retained earnings.

The bank has earmarked Rp 6.8 billion out of its Rp 12.58 billion net profits last year as retained earnings to beef up its capital.

The bank also announced yesterday that it would pay cash dividends of Rp 100 per share, or about 40 percent of last year's net profits.

Bank Indovest's total assets increased by 12.5 percent to Rp 915.99 billion as of the end of 1996 from Rp 813.85 billion in 1995.

Bank Indovest is 51 percent owned by state-owned Bank Dagang Negara, 18.14 percent by the Bank of Tokyo Mitsubishi Ltd, 17.43 percent by the Nikko Securities Co Ltd and 13.43 percent by the public. (rid)