Indonesian online brokerage Ajaib, which recently entered the unicorn club, has acquired a 24% stake in PT Bank Bumi Arta Tbk for 745.67 billion rupiah ($52.23 million), according to the lender’s disclosure to the stock exchange on Friday.
Ajaib acquired about 554.4 million shares in Bank Bumi Arta, a small-asset lender, through its subsidiary PT Takjub Finansial Teknologi at 1,345 rupiah per share, the filing to the Indonesia Stock Exchange (IDX) showed.
The deal was sealed on November 17. On the day of the transaction, Bank Bumi Arta’s shares dropped 6.9% to 3,510 rupiah per share. It had soared 24.83% on the previous day.
Ajaib bought the shares from PT Surya Husada Investment, PT Dana Graha Agung, and PT Budiman Kencana Lestari — existing shareholders of Bank Bumi Arta. Besides Ajaib, the other major shareholders in the bank are Surya Husada Investment (32.45%), Dana Graha Agung (20.07%), and Budiman Kencana Lestari (13.38%).
“Ajaib bought this bank to support its move to become an investment banking firm. The acquisition will also help Ajaib users open their securities account [which is mandatory for stock and mutual fund investments] with Bank Bumi Arta. This will also result in more savings accounts for the bank,” said an industry expert who asked not to be identified.
Ajaib had not replied to DealStreetAsia’s queries at the time of publishing this report.
The funding round was joined by Alpha JWC, Ribbit Capital, Horizons Ventures, Insignia Ventures, and SoftBank Ventures Asia. DST Global and Ribbit Capital are also significant investors in the US-based stock broking app Robinhood.
Ajaib has raised $243 million in 2021 alone.
It was modelled by its founders Anderson Sumarli and Yada Piyajomkwan along the lines of Robinhood. Ajaib targets Indonesian retail investors, mostly millennials and Gen Z users, who have little experience in stock trading and mutual fund investing. It claims to have 1.23 million user accounts.
Small banks in urgent need of capital
Many small banks in Indonesia are in need of investors who can bring in capital given the looming deadline that the Financial Services Authority (OJK) has set for banks to meet revised capitalisation norms. As per the OJK norms, announced in March 2020, commercial banks must have a minimum capital of 2 trillion rupiah ($140.36 million) by end-2021, and 3 trillion rupiah ($210.5 million) by end-2022.
Currently, Bank Bumi Arta is looking to meet the 2 trillion rupiah capital requirement to raise funds by issuing a maximum of 750 million shares in a rights issue. The rights issue is planned for Dec 13-17 and a statement from the regulator is expected on Nov 29.
Several tech companies have been acquiring small banks in Indonesia.
The most recent was Indonesian media conglomerate Emtek that bought Bank Fama, as first reported by DealStreetAsia. Earlier this year, Sea group acquired Bank Kesejahteraan Ekonomi (Bank BKE).
Meanwhile, consumer lending company Akulaku Group holds a 31.1% stake in Bank Neo Commerce and ride-hailing giant Gojek owns a 21.4% stake in Bank Jago.