RHB Bank invested RM51 million into Boost Bank to retain its strategic 40% ownership in the digital banking arm, according to a regulatory filing on 27 March 2025.
The transaction involved subscribing to 51 million new shares at RM1 per share, funded entirely through RHB’s internal reserves. The Additional Subscription aims to support Boost Bank‘s growth and operations while ensuring compliance with Bank Negara Malaysia’s minimum capital requirements.
As RHB Bank invested RM51 million, it acquired the additional shares between 17 May 17 2024 and 27 March 2025.
As of 21 March 2025, the Employees Provident Fund Board (EPF) owns 37.87% of RHB Bank and 18.17% of Axiata Group Berhad (Axiata). Boost Bank is an indirect subsidiary of Axiata.
The highest percentage ratio calculated for RHB Bank’s additional subscription of Boost Bank shares is 0.16%.
This figure is based on the value of the subscription compared to RHB Bank’s audited consolidated net assets as of 31 December 2024. Since this ratio is below the 0.25% threshold set by Bursa Malaysia’s Main Market Listing Requirements, no mandatory public announcement is required.
RHB Bank and Boost Holdings previously invested RM9.5 million in April 2024. In February 2024, RHB Bank also invested RM8.6 million in Boost Bank, subscribing to 8.6 million shares to maintain its 40% stake in the digital banking venture.
Boost Bank is Malaysia’s first homegrown digital bank. It debuted in June 2024, attracting over RM700 million in deposits within six months. By the end of the year, Boost Bank recorded a Gross Transaction Value (GTV) surpassing RM5.6 billion.
Source of image: Edited from Freepik
