Indonesia’s Bank Jatim to raise $135m in July IPO

PT Bank Pembangunan Daerah Jawa Timur (Jatim), Indonesia’s second-biggest provincial lender, is set to raise 1.28 trillion Indonesian rupiah ($135.5 million) in an initial public offering in July after the company set its IPO price on Thursday, an underwriter said.

The Surabaya-based lender has set the IPO price at 430 rupiah per share, at the bottom of a range of 430 rupiah to 670 rupiah per share, said Andi Sidharta, director at Bahana Securities, one of underwriters for the IPO.

The pricing shows how companies in Southeast Asia, outside Malaysia, have been struggling to attract equity investors and have needed to give big discounts due to global uncertainty amid the euro zone crisis.

“Eighty percent of the committed buyers are from global and local institutions,” Sidharta said.

The bank plans 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 ($5.7 billion) in total assets, according to the central bank’s latest data.

http://in.reuters.com/article/2012/06/28/bankjatim-ipo-idINL3E8HS3AJ20120628

 

Category: Indonesia