Indonesian e-commerce firm Bukalapak.com and conglomerate Salim Group will subscribe to a planned 4.8 trillion rupiah (US$335.55 million) rights issue by digital lender Allo Bank due to be launched next week, the bank said.

Digital banking has been booming in Southeast Asia’s largest economy as stay-at-home orders during the COVID-19 pandemic have driven more customers to the Internet.

Allo Bank, controlled by Indonesian tycoon Chairul Tanjung, plans to sell more than 10 billion shares at 478 rupiah a piece on Jan 13-19, according to Allo Bank’s rights issue prospectus filed to the stock exchange on Monday.

Tanjung’s Mega Corpora will lift its investment in the bank by 1.3 trillion rupiah through the rights issue, the prospectus said, noting Bukalapak.com has agreed to buy 1.2 trillion rupiah of Mega Corpora’s pre-emptive rights, while Salim Group’s Indolife Investama Perkasa will buy 623 billion rupiah worth of shares.

Mega Corpora has also sold its rights to Abadi Investments, H Holdings, Trusty Cars, and CT Corpora.

Allo Bank obtained a digital banking permit last year and will be competing with an increasing number of digital lenders, including digital units of the country’s biggest lenders Bank Central Asia and Bank Rakyat Indonesia, as well as tech firm GoTo’s Bank Jago, fintech AkuLaku’s Bank Neo Commerce and Singapore-based Sea Group’s SeaBank Indonesia.

Source: Reuters