PT Bank Pembangunan Daerah Jawa Timur (Jatim), Indonesia’s second biggest provincial lender, is looking to raise up to 1.9 trillion rupiah ($201.59 million) in an initial public offering in July after setting a price range on Tuesday, an underwriter said.
The Surabaya-based lender set a price range for the offering between 430 rupiah to 670 rupiah per share, said Andi Sidharta, director at Bahana Securities, adding that it aims to tap local investors for the IPO.
The bank aims to sell 2.98 billion new shares, equal to 20 percent of its enlarged capital. It has appointed Bahana Securities and Mandiri Sekuritas as lead underwriters.
Banks in Southeast Asia’s biggest economy are still pushing for higher credit disbursement. There are 1,665 rural banks as of March 2012 with 54 trillion rupiah ($5.72 billion) in total assets, according to the central bank’s latest data.