Bank Servitia expects Rp 4b in fresh funds
Bank Servitia expects Rp 4b in fresh funds
JAKARTA (JP): Bank Umum Servitia expects to raise at least Rp
40 billion (US$17 million) from its initial public offering (IPO)
in October, says the bank's top executive.
David Nusa Wijaya, the bank's president, said yesterday that
proceeds from the planned IPO would be used to strengthen the
bank's capital structure.
"We have to increase our capital to meet Bank Indonesia's new
capital requirements," he said after signing an agreement for a
US$12 million syndicated being provided by his bank.
The country's foreign exchange banks, including Bank Umum
Servitia, are required to increase their paid-up capital to at
least Rp 50 billion by September 1997, to Rp 100 billion by
September 1999 and to Rp 150 billion by September 2001. Their
capital adequacy ratio (CAR) must reach a minimum level of 8
percent by September 1997, 10 percent by September 1999 and 12
percent by September 2001.
Bank Servitia, which is currently controlled by David's
family, initially planned to float 40 million shares, or around
20 percent of its enlarged shares, next month but delayed the
plan due to unfavorable market conditions.
"We hope the market will be more promising in October," David
said, adding that state-owned Bank Negara Indonesia's IPO, which
is also scheduled for later this year, is unlikely to affect his
bank's public offering. "Our IPO will be launched a month ahead
of BNI's, so I don't think there will be much competition from
the state-owned bank," he added.
Many companies were reported to have delayed their IPOs to
avoid head-to-head competition with BNI's public offering, which
will be the largest IPO of the year.
Bank Umum Servitia booked total assets of Rp 1.04 trillion as
of June this year, with total lending reaching Rp 824.79 billion
and deposits Rp 801.21 billion.
The bank's pretax profit totaled Rp 9.8 billion in the
January-June period.
David said that the $12-million syndicated loan facility was
arranged for PT Plasindo Lestari, a packaging company based in
Kerawang, West Java.
He said that the lead underwriter of the syndicated loan,
which carries an interest rate of around 10 percent per annum, is
Hong Kong-based Bank Bumi Daya Internasional Finance Ltd.(hen)