Rights issue is an increase in paid-in capital in a company. This increase in capital can be for expansion needs, debt payments, or a combination of the two. In a right issue, the company offers rights to existing shareholders to acquire new shares, which means depositing capital at a certain ratio. If shareholders do not take their rights, they can sell their rights to other investors. Thus, in the capital market, it is also known as rights trading.
On July 22, 2021, PT Bank Rakyat Indonesia Tbk (BRI) conducted a right issue corporate action through the mechanism of Investment by giving pre-emptive Rights (PMHMETD) or Limited Public Offering I (PUT I) related to the plan to establish Ultra Micro Holding has been approved by the shareholders in the Extraordinary General Meeting of Shareholders. The Right Issue has the potential to become the largest rights issue in Indonesia, and it can even become one of the largest rights issues in Asia.
In the BRI’s Extraordinary General Meeting of Shareholders, there were approximately 104.22 billion votes or representing 95.98% of all shares with valid voting rights approving the company’s plan to issue a maximum of 28,677,086,000 new shares with a nominal value of IDR 50.
Related to this, BRI’s Director of Finance said that the rights issue price determination will be carried out after going through the registration process of the Financial Services Authority (OJK). Further pricing will be submitted in the prospectus of the Limited Public Offering I. (Source: www.Liputan6.com)
BRI will officially hold an additional capital with Pre-emptive Rights (HMETD) or rights issue in September 2021. The rights issue or additional capital for banks that focus on MSME loans could reach IDR 95.92 trillion. Reporting from a prospectus published by BBRI on Monday (26/7), the total rights issue funds of IDR 95.92 trillion came from the inbreng value of the shares in PT Pegadaian and PT Permodalan Nasional Madani (Persero) (PNM) of around IDR 54.77 trillion, while the rest comes from the exercise of the rights of public investors from the Limited Public Offering (PUT) I of around IDR 41.15 trillion.
The proceeds from the corporate action are planned to be used by the Indonesian People’s Body for the establishment of an Ultra Micro BUMN (UMi) holding together with Pegadaian and PT Permodalan Nasional Madani (Persero) (PNM) because of the government’s engagement. The remaining funds will be used as working capital for BRI in the context of developing the ultra-micro business ecosystem, as well as micro and small businesses. After the Indonesian economy recovers, the UMi ecosystem is estimated to have been completed, so that its business can be accelerated immediately.
Meanwhile, several capital market analysts estimate that the amount of funds that will be obtained by BRI through this corporate action will be very large. A Capital Market Observer who is also the Founder of the Indonesia Superstocks Community projects that issuers with the BRI code will have greater attractiveness than other companies seeking to raise fresh funds from the public this year. This, he said, could not be separated from BRI’s solid business fundamentals, and it is hoped that it will be strengthened by holding. (Source: www.Liputan6.com)
HOLDING BUMN ULTRA MIKRO
Holding BUMN Ultra Mikro (UMi) is a holding formed by Bank Rakyat Indonesia (BRI) together with Pegadaian and PNM because of government involvement. The holding will soon be formed where BRI is appointed as the parent along with PNM and Pegadaian which will reach a wider ultra-micro business segment in the future. With the number of micro and ultra-micro business segments estimated to reach 99% of the total business units in Indonesia, they will play an important role in the progress of the national economy, especially in accelerating the recovery of business actors. The establishment of the holding will spur the performance of Micro, Small and Medium Enterprises in Indonesia to be even better.
The purpose of establishing a holding is to further encourage the growth of Micro, Small and Medium Enterprises in Indonesia which will make a major contribution to employment and poverty alleviation. In addition, it is also considered to be very effective in accelerating economic recovery affected by the COVID–19 pandemic.
Data from the Ministry of Cooperatives and Small and Medium Enterprises mentions that the Micro, Small and Medium Enterprises (MSME) segment, including UMi, contributes to more than 60% of the Indonesian economy. Even 99% of businesses in Indonesia are currently in the category of MSME. With this very large portion, 97% of the total number of workers in Indonesia work in this sector. On the other hand, the MSME sectors are very vulnerable to being affected by the pandemic.
The integration of the ecosystem will also make business expansion stronger, thereby encouraging more investors to contribute directly to the development of ultra-micro directly or through ultra-micro holdings. (Source: www.Liputan6.com).