Bank Mayapada to float 65m shares

JAKARTA (JP): Bank Mayapada plans to float 65 million new shares to the public next month to raise Rp 32.5 billion (US$12.7 million) in fresh funds.

The bank's president Haryono Tjahjarijadi said at a public presentation yesterday that the bank would use 85 percent of the funds to strengthen its loan portfolio and 15 percent to expand its banking network.

"Currently we operate in five main cities in Java and Bali with 13 operational offices and 460 employees," Haryono said.

The five cities are Jakarta, Semarang and Surakarta in Central Java, Surabaya in East Java and Denpasar in Bali.

Chief commissioner Jeffrey K. Wonsono, also the bank's majority shareholder through PT Mayapada Karunia, said the offering of the new shares was expected to strengthen the company's performance.

"By going public, we aim not only to strengthen our capital base but also to expose our management to the public so that we would perform even better," Jeffrey said.

After the initial public offering, slated for early next month, the public will hold 20 percent stake of the bank, while PT Mayapada Karunia will control 59.52 percent and PT Mayapada Kasih the remaining 20.48 percent.

Bank Mayapada, established in 1990, would be among some 30 banks listed on the Jakarta and Surabaya stock exchanges and the third publicly listed bank established after a major banking deregulation in 1988.

The bank's public share offering, underwritten by PT Peregrine Sewu Securities, would be conducted from Aug. 11 to Aug. 13.

Haryono declined to mention the offering price for the share, which would bear a nominal value of Rp 500 but said the price would range from Rp 675 to Rp 900, with a price earing ratio of 8.2 times to 10.9 times this year's projected profits.

Bank Mayapada booked total assets of Rp 529.7 billion at the end of March, with paid-up capital of Rp 133.7 billion.

The bank recorded a net profit of Rp 6.1 billion last year, up from Rp 5.4 billion in 1995 and Rp 4.1 billion in 1994. And as of last March, net profit was recorded at Rp 3.1 billion.

The bank's total loans reached 429.4 billion as of last March, of which 99.1 percent was performing well and only 0.02 percent was nonperforming.

The bank's third party funds were recorded at Rp 384.7 billion. (rid)