BBYB by CGSCIMB - BBYB IJ: Rights issue update
2022-08-05 08:23:03

BBYB disclosed in the IDX the early prospectus for rights issue (max 5bn new shares) but the price is not determined yet. 

The indicative timeline: 

* Effective statement from OJK: 15Sep

* Cum rights: 23Sep

* Rights trading date: 29Sep to 5Oct

The timeline is inline with the initial target from the company. 

Our take: The RI target up to Rp5tn. From our calculation, the bank at least need to raise ~Rp2tn to fulfill OJK req and buffer for losses (we are assuming about Rp1tn losses for FY22). We think pricing will not lower than previous RI at Rp1,300. Stock catalyst: continously deliver good trajectory, tech stock rebound.