The bank is poised to become the first fully digital bank in Southeast Asia's largest economy.
Singapore state investor GIC plans to spend up to Rp3.15 trillion ($223.4 million) to buy 9 percent of Indonesia's Bank Jago, according to a rights issue prospectus on the Indonesia Stock Exchange, «CNBC Indonesia» reported on Friday.
The lender will releases 3 billion new shares at an exercise price of Rp 2,350 per unit, and the rights issue will allow investors to buy one new share for every 3.6 existing shares that they own. The proceeds from the rights issue will be used to boost Bank Jago's capital to about 8 trillion rupiah, from about 1 trillion rupiah currently.
According to «Bloomberg,» major shareholders Metamorphosis Ecosystem Indonesia and Wealth Track Technology, which collectively hold a 51 percent stake, will use only part of their rights to buy new shares in the rights issue, having committed to transfer such rights to GIC and other foreign institutional investors.
Unbanked Opportunity
Formerly known as Bank Arto, Bank Jago is a technology-based bank that delivers digital banking services for the SME, consumer and mass-market segments in Indonesia, home to the fourth-largest unbanked population globally.
Some 52 percent of adults (95 million people) do not own a bank account and a further 47 million adults are underbanked or have insufficient access to credit, investment and insurance.
Gojek Takes Stake
In December 2020, Indonesia-headquartered rise hailing platform Gojek's payments and financial services arm GoPay increased its stake in Bank Jago from 4.1 percent to 22.2 percent, as part of its bid to accelerate financial inclusion in Asia.
The partnership will allow Gojek users to access digital banking services through its platform, as well as to instantly open a bank account with Jago and manage their finances via the super-app.
