Boost Holdings is an indirect subsidiary of Axiata Group Bhd.

RHB Bank and Boost Holdings jointly incorporated Boost on March 1, 2023, and will be the legal entity to carry out a digital banking business.

The share subscription agreement is for Boost to meet the digital bank minimum capital funds requirement of RM100 million unimpaired by losses, Axiata Group said in a filing with Bursa Malaysia today.

“Boost Holdings and RHB Bank shall hold 60% and 40% respectively of the equity share capital of Boost.

“Within 30 days from the incorporation of Boost, Boost Holdings will subscribe for additional 60 million new ordinary shares in Boost for a cash consideration of RM60 million and RHB Bank will subscribe for additional 40 million new ordinary shares in Boost for a cash consideration of RM40 million,” Axiata Group said.

The source of funds for RHB Bank’s portion of the proposed subscription amounting to RM40 million is from internally generated funds.

Upon completion of the proposed subscription, Boost will seek the approval of Bank Negara Malaysia to be designated as the legal entity for the proposed digital bank.