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.