Publicly listed private lender Bank Mayapada is set to launch a rights issue to raise Rp 1 trillion (US$70.93 million) from the sale of 455.49 million B-series shares.

Compliance director Rudy Mulyono said the process would commence at the beginning of October.

“The rights issue is to strengthen the company’s capital to support our business expansion,” he added, after the extraordinary shareholders meeting on Wednesday. “We are optimistic entering this year’s second half and hope that the additional capital will be absorbed by the public.”

The shares of the bank, established by Indonesian tycoon Tahir, are owned by Taiwanese insurer Cathay Life Insurance Co Ltd. (40 percent), Mayapada Karunia (26.4 percent), Galasco Investments Ltd. (10 percent), Unity Rise Ltd. (7.31 percent) and the public (16.2 percent.)

The shareholders meeting also approved the appointment of Nelson Tampubolon, a former ex-officio member on the Financial Services Authority’s (OJK) board of commissioners, as one of the bank’s independent commissioners.

“We were recommended to add another independent commissioner to improve corporate governance,” said Rudy. (eyc)


Editor’s note: This article has been updated on Aug. 26 to revise the value of the rights issue.