State-owned BNI kicks off public offering campaign<\/p>\n
JAKARTA (JP): State-owned Bank Negara Indonesia (BNI) 1946
\ntoday begins its campaign to offer 25 percent of its paid-up
\ncapital to the public later this year.<\/p>\n
The sales campaign, called a roadshow in capital market
\njargon, will travel to six other cities -- Bandung in West Java,
\nSurabaya in East Java, Medan in North Sumatra, Malang in East
\nJava, Semarang in Central Java and Ujungpandang in South Sulawesi
\n-- and to some of the world's major financial centers.<\/p>\n
The overseas roadshow will be held from Oct. 14 to Oct. 24 in
\nmajor cities in Asia, Europe and the United States.<\/p>\n
BNI, the largest state-owned bank in the country, announced
\nFriday that it had already filed a registration statement with
\nthe Capital Market Supervisory Agency (Bapepam). Registration is
\nthe most important step in a bank's public offering plan.<\/p>\n
The bank, with total assets of Rp 32.35 trillion (US$13.7
\nbillion as of June 30, said that it would sell around 25 percent
\nof its paid-up stock to the public to raise fresh funds for its
\nexpansion program.<\/p>\n
BNI has yet to announce when it will offer its shares to the
\npublic or the volume of the initial public offering (IPO), which
\nis expected to become the largest after Telkom's share flotation
\non the London, New York and Jakarta stock exchanges last
\nNovember.<\/p>\n
Analysts predict that BNI's share issue, expected to reach
\naround Rp 1 trillion ($425 million), will be offered to the
\npublic sometime in the second week of November.<\/p>\n
The bank has appointed state-owned PT Danareksa Sekuritas, the
\nlargest securities company in the country, as the main
\nunderwriter of the offering. Lehman Brothers of the United States
\nhas been assigned as the financial advisor for the underwriting
\nof the bank's shares on overseas markets and publicly-listed Bank
\nDagang Nasional Indonesia as the settlement bank for the public
\noffering.<\/p>\n
The bank said that JP Morgan has also been assigned as the
\nfinancial advisor during preparations for the IPO plan, while the
\nAli Budiardjo, Nugrowo, Rekso Diputro law firm has been appointed
\nas legal advisor and Prasetyo Utomo as public accountant.<\/p>\n
Deposits at the bank had reached Rp 17.90 trillion as of June
\n30 and its loans Rp 20.44 trillion.<\/p>\n
Its pre-tax profit was recorded at Rp 198.6 billion in the
\nfirst semester of this year, or more than a half of last year's
\npre-tax profit of Rp 378.7 billion.<\/p>\n
The bank did not unveil its paid-up capital but said that its
\ncapital adequacy ratio (CAR) is 9.1 percent of weighted-risk
\nassets.<\/p>\n
The bank's IPO, first publicized in early 1994 and initially
\nscheduled to coincide with its 50th anniversary in July, was
\ndelayed for undisclosed reasons. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/state-owned-bni-kicks-off-public-offering-campaign-1447893297",
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