Bank Tabungan Negara (BTN), the nation's biggest mortgage lender, became the fourth company to list its shares at the Jakarta Stock Exchange so far in December, gaining by 5 percent in its trading debut.
So far this year, 12 companies have gone public.
Thursday's BTN listing was a follow-up after the lender sold 2.36 billion shares at Rp 800 a share in an initial public offering (IPO) earlier this month, representing about a 27 percent stake in the bank.
In its trading debut, the company's share price surged 10 percent before retreating to close at Rp 840 a share, still representing a 5 percent net gain.
Mandiri Sekuritas and CIMB Securities acted as underwriters for BTN's IPO, in which the lender raked in Rp 1.88 trillion (about US$199.2 million) in proceeds.
BTN said the fresh capital would be used mainly to boost lending expansion next year.
BTN has so far booked 25 percent lending growth this year, far ahead of the single-digit growth posted by the banking industry on average. Next year, it expects to book its 27 percent loan growth target to reach Rp 64 trillion in credit outstanding by the year's end.
This fairly solid growth in lending is expected to increase the bank's net profits this year to Rp 485 billion, 10 percent higher than last year.
As of September this year, the company gained Rp 400 billion in net profits and is still optimistic to exceed its annual target.
For next year, BTN aims to achieve Rp 745 billion in net profits, while net interest income in 2010 would be around Rp 3.5 trillion.
On Thursday, after the official listing, State Minister for State Enterprises Mustafa Abubakar said BTN's IPO would definitely boost the lender's role in providing housing loans.
After the IPO, BTN plans to issue bonds amounting to between Rp 1 trillion and Rp 1.5 trillion in the first half of next year. It would be the bank's 14th bond issue.
The proceeds will also be used to further accelerate credit expansion.
Three other companies listing their shares at the exchange in December were PT Dian Swastika Sentosa, PT Bukit Citra Permai and PT Pelat Timah Nusantara or Latinusa.
