After months of uncertainty, state lender Bank Tabungan Negara (BTN) started Thursday the preparatory process for the sale of its 27 percent stake to the public set to take place next month and planned to generate up to Rp 2.6 trillion (US$266 million) in proceeds.
"We are offering Rp 750 to Rp 1,100 per share," director for investment banking at PT Mandiri Sekuritas, Iman Rahman, told reporters at a media conference on the theme of Go-Public BTN in Jakarta.
Mandiri and CIMB Securities have already been appointed as the underwriters for the initial public offering (IPO).
The price range is planned to result in proceeds of between Rp 1.8 trillion and Rp 2.6 trillion, Iman added, as confirmed by BTN treasury director Saut Pardede.
Of the total stake sales, 4 percent will be offered to employees under a special stock option program.
"We plan to register our stakes at the Indonesia Stock Exchange (IDX) on Dec. 17 this year. The book building started Thursday and continues until Dec. 3," he said, adding that BTN would also offer the stake to foreign investors.
"We are starting a road show to go to Asia and Europe," Iman said.
BTN will register about 2.36 billion of its shares for the IPO, equal to about 27 percent of its stake.
In early 2008, the House recommended the sale of 30 percent of the shares in BTN. In addition to BTN, lawmakers also have approved the sales of stakes in national flag carrier Garuda Indonesia and state housing company PT Pembangunan Perumahan through IPOs.
However, BTN seems to be the one ready for the IPO this year, as the other two may have to wait until next year to execute their plans.
The BTN IPO is expected to boost the lender's capital for its expansion plans next year, with the bank also planning to sell bonds.
"We will sell our 14th bond issue in 2010, amounting to Rp 1,5 trillion," BTN president director Iqbal Lantoro said.
The plans would help finance BTN's expansion plans aimed at boosting lending to up to Rp 20 trillion, about 25 percent higher than the Rp 16 trillion in loans estimated to be disbursed this year.
The lender has so far booked a 25 percent growth in lending, far ahead of the 15 percent growth target set by the central bank for the banking industry.
"We are targeting to post Rp 485 billion in net profits this year. Until September, we have gained Rp 400 billion," Iqbal said, adding that he was optimistic to meet these targets.
BTN was established in 1976. The bank has distributed housing credits to about 3 million people across the country.
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