RHB and Boost Holdings Collectively Invest RM9.5 Million in Digital Bank
by Fintech News Malaysia April 16, 2024RHB Bank has announced an investment of RM3.8 million to purchase 3.8 million new shares in Boost Bank, in order to maintain its 40% stake in the digital bank. This transaction was funded by the incumbent bank’s internally generated funds.
The move is part of a collective effort with Boost Holdings, which also invested RM5.7 million for 5.7 million shares to preserve its 60% share in Boost Bank.
This joint investment by RHB Bank and Boost Holdings, totaling RM9.5 million, aims to support Boost Bank’s operational and capital expenses for the first half of 2024 and ensure compliance with minimum capital requirements set by Bank Negara Malaysia.
Following the transaction, Boost Bank’s total paid-up capital will be approximately RM224.5 million, reflecting the issuance of about 224.5 million shares.
This move will not affect the issued share capital or the holdings of major shareholders of RHB Bank and is not expected to significantly impact the bank’s net assets, gearing, or earnings for the financial year ending 31 December 2024.
The Boost-RHB digital bank consortium was one of five groups awarded digital banking licenses by BNM in April 2022. It officially commenced operations on 15 January 2024 following a thorough operational readiness review validated by the central bank.
Currently, the consortium is undergoing an alpha-testing phase with internal employees, family, friends, and a selected group of customers. This phase aims to refine user experience and product offerings before a wider public launch next month.
