Bank Mandiri chief vows to go ahead with planned IPO
Bank Mandiri chief vows to go ahead with planned IPO
BATAM (JP): The president of giant state Bank Mandiri, Robby
Djohan, vowed to press ahead with plans to offer between 25
percent and 30 percent of the bank's shares through an initial
public offering (IPO) in October.
Robby said he planned to meet with the minister of finance
this week to convince him the IPO would be good for the country,
and that Bank Mandiri was the most "suitable" state bank to go
public this year.
"I am planning to talk with the minister of finance next
week," Robby said over the weekend following a business
gathering.
"It's true that there are still many internal matters to be
settled, but according to my calculations this can be completed
soon," he said.
Robby said four investment banks -- Solomon Brothers, Deutsche
Bank, Goldman Sachs and CS First Boston -- had made presentations
and all had said Bank Mandiri was ready to go public in 2000.
"This year we expect a (net) profit of Rp 750 billion, but
with the current organization and our capital base potential, the
profit could jump to between Rp 2 and 3 trillion over the next
two to three years," he said.
Robby said Bank Mandiri focused its lending on medium-sized
businesses and looked to control 30 percent of this market.
"This should be appealing to investors .... (This year) is the
best time for us to go public. But if we wait for another two
years, nobody would buy. This is the right time to buy," he said.
Bank Mandiri plans to raise between US$1.2 billion and $1.5
billion through the IPO to help finance its credit expansion.
Robby also said the IPO would be good for the country. "This
would be a benchmark showing that Indonesia is trusted by
investors again."
Minister of Finance Bambang Sudibyo indicated last week state
Bank Rakyat Indonesia (BRI) was ready to go public this year.
Speaking during a hearing with the House of Representatives,
Bambang said several foreign investors had expressed their
interest to him in BRI.
He also said BRI was attractive to foreign investors because
of the bank's focus on financing small-scale agro industries,
which have been relatively unharmed by the country's economic
crisis.
"If the minister of finance says he prefers BRI to go public
first, we can only follow him since he is the (bank's)
shareholder," Robby said.
Bank Mandiri was formed in August last year through the merger
of four state banks -- Bank Bumi Daya, Bank Pembangunan
Indonesia, Bank Ekspor Impor Indonesia and Bank Dagang Negara.
The government recently recapitalized the bank through the
injection of some Rp 178 trillion in bonds to raise the bank's
capital adequacy ratio (CAR) above the minimum 4 percent.
Robby recently said the bank's CAR should reach around 12
percent by the end of this year.
Bank Mandiri plans to provide some Rp 8 trillion in new loans
this year, he said.
The bank, which has over 730 branches, is currently in the
process of completing its on-line operations. (rei)
BATAM (JP): The president of giant state Bank Mandiri, Robby
Djohan, vowed to press ahead with plans to offer between 25
percent and 30 percent of the bank's shares through an initial
public offering (IPO) in October.
Robby said he planned to meet with the minister of finance
this week to convince him the IPO would be good for the country,
and that Bank Mandiri was the most "suitable" state bank to go
public this year.
"I am planning to talk with the minister of finance next
week," Robby said over the weekend following a business
gathering.
"It's true that there are still many internal matters to be
settled, but according to my calculations this can be completed
soon," he said.
Robby said four investment banks -- Solomon Brothers, Deutsche
Bank, Goldman Sachs and CS First Boston -- had made presentations
and all had said Bank Mandiri was ready to go public in 2000.
"This year we expect a (net) profit of Rp 750 billion, but
with the current organization and our capital base potential, the
profit could jump to between Rp 2 and 3 trillion over the next
two to three years," he said.
Robby said Bank Mandiri focused its lending on medium-sized
businesses and looked to control 30 percent of this market.
"This should be appealing to investors .... (This year) is the
best time for us to go public. But if we wait for another two
years, nobody would buy. This is the right time to buy," he said.
Bank Mandiri plans to raise between US$1.2 billion and $1.5
billion through the IPO to help finance its credit expansion.
Robby also said the IPO would be good for the country. "This
would be a benchmark showing that Indonesia is trusted by
investors again."
Minister of Finance Bambang Sudibyo indicated last week state
Bank Rakyat Indonesia (BRI) was ready to go public this year.
Speaking during a hearing with the House of Representatives,
Bambang said several foreign investors had expressed their
interest to him in BRI.
He also said BRI was attractive to foreign investors because
of the bank's focus on financing small-scale agro industries,
which have been relatively unharmed by the country's economic
crisis.
"If the minister of finance says he prefers BRI to go public
first, we can only follow him since he is the (bank's)
shareholder," Robby said.
Bank Mandiri was formed in August last year through the merger
of four state banks -- Bank Bumi Daya, Bank Pembangunan
Indonesia, Bank Ekspor Impor Indonesia and Bank Dagang Negara.
The government recently recapitalized the bank through the
injection of some Rp 178 trillion in bonds to raise the bank's
capital adequacy ratio (CAR) above the minimum 4 percent.
Robby recently said the bank's CAR should reach around 12
percent by the end of this year.
Bank Mandiri plans to provide some Rp 8 trillion in new loans
this year, he said.
The bank, which has over 730 branches, is currently in the
process of completing its on-line operations. (rei)