BNI's share offering oversubscribed by 350%<\/p>\n
JAKARTA (JP): State-owned PT Bank Negara Indonesia (BNI)
\n1946's initial public offering was oversubscribed by almost 350
\npercent with foreign investors accounting for most of the orders.<\/p>\n
Agus Projosasmito, president of state-owned PT Danareksa
\nSekuritas, the lead underwriter, said yesterday that there were
\n4.84 billion orders, while only 1.08 billion shares, or 25
\npercent of the bank's enlarged capital, were on offer.<\/p>\n
\"We therefore have to reduce the allotment to foreign
\ninvestors to give more opportunity to domestic investors,\" Agus
\ntold journalists at his office.<\/p>\n
Foreign investors subscribed to 2.88 billion shares and
\ndomestic investors to 1.96 billion.<\/p>\n
\"This privatization is the largest in terms of investors'
\nparticipation,\" Agus said.<\/p>\n
The government has privatized four state firms through
\ndomestic and international stock exchanges: cement firm PT Semen
\nGresik, telecommunication firms PT Indosat and PT Telkom and tin
\nminer PT Tambang Timah.<\/p>\n
Agus said his team of underwriters had decided to reduce the
\nforeign allotment of the total offering from 49 percent, the
\nmaximum allowed by capital market rules, to 43.06 percent.<\/p>\n
\"By this, we can give local retail investors more opportunity
\nto get BNI shares,\" Agus said.<\/p>\n
He said domestic investors subscribing to BNI shares came from
\nJakarta, Medan, Bandung, Semarang, Surabaya, Malang and
\nUjungpandang.<\/p>\n
But he warned that not all local investors, including those
\nsubscribing to only one lot of 500 common shares, would have
\ntheir orders met because of the limited offering.<\/p>\n
Wahzari Wardaya, another Danareksa Sekuritas executive, said
\nthe team of underwriters had received 787,665 subscription forms,
\nof which 786,267 had come from local investors.<\/p>\n
A total 617,693 local investors filed orders for only one lot.
\nBut the allotment available for retail domestic investors was
\nonly 212,725,500 shares, or 425,451 lots.<\/p>\n
\"Therefore, we were compelled to run a lucky draw to
\ndistribute the available stocks,\" Wahzari said.<\/p>\n
The lottery was conducted Nov. 13, and was witnessed by public
\nnotary Fatma Ul Chasanah.<\/p>\n
Wahzari noted that 59.5 percent of the 1.08 billion shares
\nwere offered through fixed allotments, meaning that investors
\nwould get the number of shares they subscribed to.<\/p>\n
The distribution of the fixed allotment offering is as
\nfollows: 27.35 percent of the total shares are allocated for
\nforeign investors, 22.21 percent for local investors and 10
\npercent for BNI employees.<\/p>\n
Therefore, only 40.5 percent of the 1.08 billion stocks are
\navailable to foreign and domestic retail investors.<\/p>\n
He dismissed rumors that his company had violated procedures
\nby selling fixed-allotment shares to individual investors,
\nespecially wealthy individuals. He said the fixed allotment
\nshares went mostly to institutional investors such as mutual
\nfunds, pension funds and insurance firms.<\/p>\n
Both Agus and Wahzari said they held the news conference to
\nexplain the allotment and distribution of BNI shares, which has
\ndrawn wide criticism from underwriters and investors.<\/p>\n
Seventy-nine securities firms are acting as underwriters and
\nsub-underwriters for the initial public offering, while smaller
\nbrokerages are acting as agents.<\/p>\n
Agus said Danareksa would refund the investors who could not
\nget all the shares they ordered on Nov. 21 before BNI's shares
\nare listed on the Jakarta and Surabaya stock exchanges on Nov.
\n25.<\/p>\n
He said that, unlike other state firms such as Telkom and
\nIndosat which were virtual monopolies, BNI had many competitors
\nalready listed on the domestic stock exchanges.<\/p>\n
Twenty-two banks are listed on the Jakarta Stock Exchange.<\/p>\n
The BNI shares, priced at Rp 850 a share (US 36 cents) in the
\ninitial public offering, have a prospective price-earning ratio
\nof eight this year, below the industry's average of ten.<\/p>\n
BNI, with total assets of Rp 32.35 trillion ($13.7 billion) on
\nJune 30, is the country's largest commercial bank.<\/p>\n
It expects to raise about Rp 1 trillion from the public
\noffering.<\/p>\n
The bank's net interest revenue in the first half of 1996 was
\nRp 405.4 billion, down 0.7 percent from the same period in 1995.
\nTotal revenue in the first half of 1996 was Rp 663 billion, an
\nincrease of 14.3 percent from the same period last year.<\/p>\n
Operating expenses for the first six months of the year stood
\nat Rp 471.2 billion, up 15.9 percent compared to the
\ncorresponding period for 1995.<\/p>\n
On June 30 it had deposits of Rp 17.90 trillion and credits of
\nRp 20.44 trillion. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bnis-share-offering-oversubscribed-by-350-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}