KUALA LUMPUR (March 15): Digital bank Boost Bank Bhd has seen an additional injection of RM8.5 million by its two shareholders.
Boost Bank is a 40:60 digital bank venture by RHB Bank Bhd and Boost Holdings Sdn Bhd, an indirect subsidiary of Axiata Group Bhd.
RHB Bank has spent an additional RM3.4 million in cash to subscribe for an additional 3.4 million new Boost Bank shares, to maintain its 40% equity interest in the digital bank.
The RM3.4 million investment was sourced from internally generated funds, said RHB Bank in a bourse filing on Friday.
RHB Bank said the purpose of the additional subscription is to enable Boost Bank to finance its operational and capital expenditures for the first half of 2024 while ensuring compliance with the minimum capital requirements set by Bank Negara Malaysia.
Concurrently, Boost Holdings has also subscribed for an additional 5.1 million new Boost Bank shares for RM5.1 million, to maintain its 60% equity interest in Boost Bank.
Post-transaction, the paid-up capital of Boost Bank is approximately RM215 million comprising approximately 215 million Boost Bank shares.
Boost-RHB is among the five consortiums — three conventional and two Islamic — that secured digital banking licences from Bank Negara, out of 29 applications, in April 2022.
On Friday, RHB Bank’s share price closed unchanged at RM5.62, bringing the bank a market capitalisation of RM24.09 billion.
Axiata settled one sen or 0.4% lower at RM2.82, for a market value of RM25.89 billion.