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Digital banking: BCA joins the fray with planned IPO
BCA president director Jahja Setiaatmadja said the target for the initial public offering (IPO) of BCA Digital was in one or two years.
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Customers walk out from a Bank Central Asia (BCA) counter in Jakarta. (JP/Nurhayati )
B
ank Central Asia (BCA) plans to list digital banking arm BCA Digital on the Indonesia Stock Exchange (IDX) within one or two years as the country’s top private lender seeks to capitalize on stock market enthusiasm for such banks.
BCA president director Jahja Setiaatmadja said the parent company planned to inject additional capital to make BCA Digital more “sizable” in luring investors ahead of the digital bank’s Initial Public Offering (IPO).
“Everybody is after digital [companies],” Jahja said in an online briefing on Thursday. “By far, investors are not interested in small, new companies, except for digital ones.”
BCA Digital, which was officially launched in July, currently focuses on providing payment services such as e-wallet top-ups and bill payments.
The IPO plan comes at a time when the country is seeing a pandemic-induced boom in its digital economy, as reflected in the projected growth of 19.1 percent in digital banking transactions to Rp 32.2 quadrillion (US$2.22 trillion) this year, according to Bank Indonesia.
Read also: Bank Jago effect’: Small banks’ shares surge on consolidation, digital bank boost
Bank Jago, trading under the ticker ARTO, was acquired last year by ride-hailing and payment unicorn Gojek as the latter sought wider access to digital banking services. Bank Jago has seen its share price surge by a staggering 351.46 percent to Rp 15,875 by Thursday from the start of the year.
