RHB Bank subscribes additional 3.4 million shares in Boost Bank

KUALA LUMPUR: RHB Bank Bhd has subscribed for an additional 3.4 million new Boost Bank shares for RM3.4 million cash to maintain its 40 per cent equity interest in the digital bank.

In a filing to Bursa Malaysia, RHB Bank said Boost Holdings, an indirect subsidiary of Axiata Group Bhd, had also subscribed for an additional 5.1 million new Boost Bank shares worth RM5.1 million to maintain its 60 per cent equity interest in Boost Bank.

"The purpose of the additional subscription is for Boost Bank to fund its operating and capital expenditure for the first half of 2024 and to continue meeting the minimum capital funds as required by Bank Negara Malaysia.

"Upon completion of the additional subscription, the paid-up capital of Boost Bank is approximately RM215.0 million comprising about 215.0 million shares," it said.

To recap, Boost Bhd, RHB Bank Bhd and Boost Holdings had inked a share subscription agreement and shareholders agreement to form a digital bank consortium on March 31, 2023.

Pursuant to the shareholders' agreement, RHB Bank and Boost Holdings will hold 40 per cent and 60 per cent equity interest in Boost Bank, respectively. - Bernama