Bank CIC to raise Rp 70b from public

Bank CIC to raise Rp 70b from public

JAKARTA (JP): Bank Century Intervest Corporation (CIC),
expects to raise up to Rp 70 billion (US$28.79 million) from its
initial public offering (IPO) early next month.

CIC's president Robert Tantular said yesterday the bank
planned to sell 70 million new shares or 30.43 percent of its
enlarged stock to the public to expand its capital structure and
network.

"The shares will have a nominal value of Rp 500 a share, and
will be sold at between Rp 750 and Rp 1,000 each," Robert said
after the public presentation of the IPO plan.

About 70 percent of the IPO proceeds would be used to increase
the bank's credit portfolio, 20 percent to expand its network
branches, and 10 percent to develop the bank's information and
technology systems and human resources department, he said.

PT Bhakti Investama and PT Pacific Duaribu Investindo will co-
underwrite the public offering.

The foreign exchange bank is 49.88 percent owned by PT Century
Mega Investindo, 30.12 percent by PT Century Super Investindo,
and 20 percent by PT Aditya Reksautama.

The IPO will reduce Century Mega's stake to 34.70 percent,
Century Super's to 20.96 percent, and Aditya's to 13.91 percent.

Robert said that with the IPO, the bank would be able to meet
the new minimum capital requirement of Rp 150 billion set by the
central bank.

Foreign exchange banks, such as Bank CIC, are required to have
a paid-up capital of at least Rp 150 billion by the year 2001.

Robert said Bank CIC, founded in 1989, booked a net profit of
Rp 5 billion last year, a 60 percent rise from Rp 3.12 billion in
1995.

The bank's credit grew by 52.88 percent to Rp 351.42 billion
last year, and its total assets rose 48.56 percent to Rp 544.04
billion, he said.

He said the bank's capital adequacy ratio was 10.98 percent
last year, up from 10.75 percent in 1995.

This year, it expected a 260 percent rise in net profit to Rp
18 billion after the IPO, he said.

The bank has 29 branches in Sumatra, Java and Kalimantan.

Robert said it planned more branch offices in cities including
Surabaya (East Java), Yogyakarta (Central Java), Medan (North
Sumatra), and Ujung Pandang (South Sulawesi).

He said the management was committed to paying dividends of at
least 25 percent of total net profit if it reached Rp 20 billion.

"The dividends will be 30 percent if net profit exceeds Rp 20
billion," he said. (das)