BNI makes successful capital market debut
JAKARTA (JP): State-owned Bank Negara Indonesia (BNI) made a successful debut on the Jakarta Stock Exchange yesterday, gaining nearly 50 percent on the first day of its listing.
Securities dealers said BNI, the first state-owned bank to float shares on the stock exchange, was warmly received by foreign and local investors.
The bank's share price surged by around 40 percent to Rp 1, 200 in less than an hour after trading began. But after peaking at Rp 1,300 the shares lost ground as individual investors started taking profits, a dealer at a major brokerage company said.
The shares closed at Rp 1,250 or 47 percent above the initial price offering of Rp 850 with an overall transaction volume of more than 179 million shares on the regular trading board.
The bank's significant gain pushed up the JSX Composite Index to close 15.37 points or 2. 5percent higher at 628.23 from 621.86 on Friday.
"The demand for the BNI shares is huge," she said. "It seemed that investors who received no significant allotment in the primary market, took the chance to make a big order."
Securities analysts estimated that BNI share prices would continue to rise, given that yesterday's closing price was lower than those of the other listed banks.
"I believe that with the existing demand, BNI's share price still has room to increase further," a securities analyst said.
But senior analyst Sjahrir believed the high prices would not last because the rise was mainly caused by "psychological reasons".
"It don't think the price will stay at its current level in the next few weeks," he said.
BNI president Widigdo Sukarman said the market's positive response to BNI's initial listing reflected the public's confidence in the bank and the country's banking industry.
"I am very happy about this," he said after witnessing the bank's initial listing on the exchange. "It also means that we have to work harder to maintain their confidence."
Several senior officials including Minister of Finance Mar'ie Muhammad witnessed the bank's listing.
BNI, Indonesia's largest commercial bank, sold 1.08 billion new shares, or around 25 percent of its enlarged capital, in the public offering. The shares, with a nominal value of Rp 500, were sold for Rp 850 (around 34 U.S. cent) each.
The bank's offering was oversubscribed by almost 350 percent with foreign investors accounting for most orders.
PT Danareksa Sekuritas, the offering's lead underwriter, said there were 4.84 billion orders.
Foreign investors subscribed to 2.88 billion shares and domestic investors to 1.96 billion.
BNI, Indonesia's largest state-owned bank with around Rp 32.4 trillion ($14.09 billion) in total assets on June 30, 1996, is the fifth state firm to list on the exchange since 1991.
The other listed state firms are Semen Gresik, telecommunications companies PT Telkom and PT Indosat and tin miner PT Tambang Timah. (hen)