BII plans IPO for motorcycle financing unit<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
Publicly listed Bank Internasional Indonesia (BII) plans to
\nsell shares in motorcycle financing firm PT Wahana Ottomitra
\nMultiartha (WOM) to the public via an initial public offering
\n(IPO) in the near future.<\/p>\n
BII managing director Rudy N. Hamdani said the IPO for WOM
\nwould probably be launched after the bank completed the
\nacquisition of the financing firm, and obtained approval from the
\nstock market authorities, expected early next year.<\/p>\n
\"We are planning an IPO for WOM after we conclude the
\nacquisition,\" said Rudy on the sidelines of a ceremony to mark
\ncooperation between the bank and Singapore Airlines on Tuesday.<\/p>\n
Rudy refused to disclose the exact timing and details of the
\nIPO plan.<\/p>\n
Jakarta Stock Exchange (JSX) listing director Harry Wiguna
\ntold The Jakarta Post that there was indeed a plan by WOM to
\nlist its shares on the JSX, but the company had not officially
\nsubmitted a proposal for the plan.<\/p>\n
\"There has been talks between the JSX, BII and WOM for the IPO
\nplan. However, until now there is has been no official proposal
\nfrom them,\" said Harry.<\/p>\n
BII completed the signing of a conditional sales and purchase
\nagreement (CSPA) with WOM last month to purchase a 75 percent
\nstake in the company.<\/p>\n
The acquisition will help boost BII's ability to provide loans
\nto a broader spectrum of the public, especially to the consumer
\nsector, and an additional distribution channel to cross-sell
\nproducts that the bank has to offer to the market.<\/p>\n
Motorcycle sales in the country have been strong mainly due to
\nfalling interest rates, which allows more people to obtain loans
\nat a lower rate for motorcycle purchases. The upward trend is
\nprojected to continue next year, as the country's inferior public
\ntransportation system prompts people to buy private vehicles.<\/p>\n
BII's gross lending grew by 52.2 percent to Rp 12.37 trillion
\n(US$1.36 billion) in the first semester of this year as against
\nRp 4.24 trillion in the same period last year.<\/p>\n
Rudy said that in the next five years, the bank would focus
\nits business on the consumer and small- and medium-enterprises
\nsector.<\/p>\n
The bank has targeted consumer lending to reach about Rp 4
\ntrillion this year. As of September, the bank managed to channel
\nsome Rp 3.5 trillion, he said.<\/p>\n
\"We are planning to boost lending for cars, houses and credit
\ncards next year to tap the business opportunities provided by the
\nimpressive growth in consumer spending following a rise in
\nbusiness confidence,\" he said.<\/p>\n
Consumer spending has been the country's main engine of
\neconomic growth since the Asian financial crisis in late 1997.
\nDomestic consumption accounts for 70 percent of the country's
\ngross domestic product.<\/p>\n
BII, the country's sixth largest bank in terms of assets, is
\n52 percent owned by Kookmin Bank, South Korea's largest bank, and
\nSingapore's Temasek. BII shares on the JSX ended unchanged at Rp
\n170 on Tuesday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bii-plans-ipo-for-motorcycle-financing-unit-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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