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BRISyariah to hold IPO in early May
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State-owned lender Bank Rakyat Indonesia president director Suprajarto (second right) and BRISyariah president director Moch. Hadi Santoso (third left) speak to journalists after holding a due diligence meeting in Jakarta on April 5. The state-owned sharia lender is set to go public on May 9. (JP/Stefanno Reinard Sulaiman)
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n a bid to strengthen its core capital, BRISyariah, a subsidiary of state-owned lender Bank Rakyat Indonesia (BRI), is set to go public on May 9, by selling 27 percent of its shares.
Through the initial public offering (IPO), BRISyariah eyes between Rp 1.3 trillion (US$94 million) and Rp 1.7 trillion from the sale of 2.62 billion shares, with IPO prices between Rp 505 and Rp 650 apiece.
"The IPO will put us into the BUKU III bank category [having capital between Rp 5 trillion and Rp 30 trillion], as it will facilitate the development of products and networks," BRISyariah president director Moch. Hadi Santoso said at a press conference after a due diligence meeting in Jakarta on Thursday.
According to the press statement, around 80 percent of the proceeds will be allocated for financing, 12.5 percent for IT development and the rest for expanding its branches.
"[It is] to develop new branch offices from Sabang [Sumatra] to Merauke [Papua]," Hadi said.
The company will hold its book-building period from April 5 to 20 and has appointed PT Bahana Sekuritas, PT Danareksa Sekuritas, PT CSLA Sekuritas Indonesia and PT Indo Primier Sekuritas as underwriters for the IPO.
"I expect the IPO will help our financing grow around 13 to 15 percent this year," Hadi added. BRIsyariah’s move to go public will mark its position as the second publicly listed sharia bank in the country after Dubai Panin Dubai Syariah Bank held an IPO four years ago. (srs/bbn)
