Bukalapak to buy Indonesian digibank’s shares via rights issue

Indonesian ecommerce major Bukalapak and conglomerate Salim Group will be taking part in the rights issue of digital bank Allo Bank to be launched next week, according to a Reuters report.

Allo Bank is planning to sell over 10 billion new shares at a price of 478 rupiah (US$0.03) per share. This means the digital lender could raise nearly US$335 million via the rights issue.

Mega Corpora, which holds a 90% stake in Allo Bank, will reduce its investment in the digibank by US$90.7 million through the rights issue.

While Bukalapak will be buying US$83.7 million worth of Mega Corpora’s pre-emptive rights, the Salim Group will purchase US$43.4 million worth of shares via its unit Indolife Investama Perkasa, noted the report.

See also: Bukalapak’s financial performance in 8 charts

Currency converted from Indonesian rupiah to US dollars: US$1 = 14.32 rupiah.