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Bank Sumut looks to elevate business, credit class through IPO
Bank Sumut is set to make its debut on the Indonesia Stock Exchange on Feb.7 to become the fourth regionally owned bank listed on the bourse.
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PT Bank Pembangunan Daerah Sumatera Utara (Bank Sumut) holds a public exposé on Jan. 9, 2022 regarding its planned initial public offering. (Bank Sumut/-)
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T Bank Pembangunan Daerah Sumatera Utara (Bank Sumut) is looking to raise more capital through an initial public offering (IPO) to expand its business, elevate its status and strengthen corporate governance.
The bank, which is owned by the North Sumatra administration, announced on Monday that it planned to sell 2.9 billion primary shares, or 23 percent of its estimated share capital, at Rp 350 (2 US cents) to Rp 510 per share on Feb. 7 on the Indonesia Stock Exchange (IDX).
In doing so, the bank is set to become the fourth regionally owned bank (BPD) listed on the stock market, alongside PT BPD Jawa Barat dan Banten (Bank BJB), PT BPD Jawa Timur (Bank Jatim) and PT BPD Banten (Bank Banten).
“We hope this IPO will grow our role and our company in supporting and pushing North Sumatra’s economy, strengthen public welfare and give value added to [our] shareholders and stakeholders,” Bank Sumut president commissioner Brata Kesuma said on Monday.
The lender plans to use 80 percent of the capital funds it raises through the IPO to expand its credit, from working capital loans and investment loans to consumer loans. The remaining 20 percent is to go toward expanding its branch offices and information technology development for digital banking services.
“Bank Sumut’s market share is only 10 to 12 percent, meaning the growth potential is still very [significant] in today’s financial ecosystem,” said Bank Sumut acting president director Hadi Sucipto.
Hadi said the bank’s 2022 net profit was Rp 706 billion, a 15.5 percent increase from Rp 613 billion in 2021. It also booked positive credit performance of Rp 27.85 trillion in 2022, up 10.58 percent from Rp 25.18 trillion in 2021.
