Bank Arya plans to sell 98 million new shares

JAKARTA (JP): Bank Arya plans to offer 98 million new shares or 24.5 percent of its enlarged capital to raise fresh funds of about Rp 50 billion (US$20.57 million) from the public, an executive said yesterday.

"The bank is still waiting for approval from the Capital Market Supervisory Agency to list its shares, each with a par value of Rp 500, on the Jakarta Stock Exchange," managing director Benny Dwibyantoro said.

"We hope the shares can be listed on the bourse in June," he said.

He said that about 20 percent of the proceeds from the share issuance would be used to finance new offices, 10 percent for human resource and technology development and 70 percent to expand the bank's lending capability.

The bank, which has 14 offices in Indonesia, would open another six to ten branches in Pekanbaru, Bandung and Jakarta, he said.

The bank, formerly called Bank Pertiwi, was taken over in 1993 by the Ongko Group, which changed its name to PT Bank Arya Panduarta or Bank Arya in 1994.

Bank Arya's assets increased to Rp 1.1 trillion at the end of last year from Rp 928.97 billion at the end of 1995, said Benny.

He said the bank's profit rose to Rp 8.83 billion last year from Rp 4.86 billion in 1995.

"We expect Rp 37 billion in profit this year, with our assets increasing to Rp 1.5 trillion by the end of the year," he said. (13)