TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Panin Syariah makes unimpressive debut at stock exchange

Panin Bank Syariah (PBS), the country’s first sharia lender to enter the bourse, made unimpressive trading during its debut at the Indonesia Stock Exchange (IDX) on Wednesday

Anggi M. Lubis (The Jakarta Post)
Jakarta
Thu, January 16, 2014

Share This Article

Change Size

Panin Syariah makes unimpressive debut at stock exchange

P

anin Bank Syariah (PBS), the country'€™s first sharia lender to enter the bourse, made unimpressive trading during its debut at the Indonesia Stock Exchange (IDX) on Wednesday.

PBS shares, listed on the stock exchange under the code PBNS, opened flat with the price unchanged from the initial public offering (IPO) price of Rp 100. The shares recorded a peak at Rp 105 soon after opening, before slipping to Rp 95.

PBS '€” which became the first company to be listed on the country'€™s bourse this year '€” concluded trading with its shares valued at Rp 97.

PBS president director Deny Hendrawati said that the company reaped about Rp 475 billion from releasing 4.75 billion shares or 47.5 percent of its enlarged capital in the IPO held earlier this month.

Deny added that 20 percent of the funds obtained from the IPO would be used to set up the necessary infrastructure for electronic banking in addition to the opening of 10 new branches and a cash office in 2014. PBS currently operates five branches and five subbranches in Java and is hoping to attract more revenue outside the island.

The rest of the funds obtained from the IPO will be used for its working capital, including expanding its network and infrastructure, supporting its long-term financing service and maintaining its finance-to-debt ratio (FDR) below 100 percent.

She added that PBS especially aimed to explore the huge potential of haj funding. The number of people registering and putting money toward going on haj pilgrimages reaches 400,000 per year. In fact, Indonesia can only transport 250,000 people to Mecca for the haj annually due to a quota from the Saudi Arabian government.

'€œThis will potentially bring about Rp 10 trillion to Rp 12 trillion annually,'€ she said.

Deny said PBS hoped to boost its haj financing by 46 percent from Rp 2.6 trillion last year up to Rp 3.8 trillion in 2014. PBS saw its financing grow by 72 percent last year, from Rp 1.52 trillion in 2012.

The lender also expects to grow its third-party funds (DPK) by nearly 40 percent to Rp 4 trillion this year, up from Rp 2.87 trillion in 2013. PBS recorded a 135 percent increase of its DPK last year, compared to Rp 1.22 trillion in 2012.

Trust Securities analyst Reza Priyambada said that, while stocks of conventional banks performed well during Wednesday'€™s trading, PBS'€™s muted performance was most likely caused by investors'€™ lack of cognition of sharia lenders '€” rather than the bank'€™s actual performance.

'€œWith PBS being the country'€™s first sharia bank to enter the bourse, investors probably chose to wait and see how its stock will perform in the market before purchasing them,'€ Reza said.

He added that investors might still be questioning whether stock market and sharia lenders can work together, given Islamic banks'€™ profit sharing system, which differs from that of conventional banks.

Reza added that shares of sharia banks were actually desirable, with promising growth that goes above the annual growth of conventional banks, tight risk management and the fact that they are not impacted by Bank Indonesia'€™s benchmark interest rate.

Indonesia, a Muslim-majority country, currently has 11 sharia lenders operating with total net assets estimated to be about 5 percent of the country'€™s total combined banking assets. The first sharia lender to operate in the country was Bank Muamalat, which was established in 1992.

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.