Bukopin to sell 30% stake in IPO

Bukopin to sell 30% stake in IPO

JAKARTA: PT Bank Bukopin will offer a 30 percent stake to the public via an initial public offering expected in June, the bank said on Wednesday.

It said it will offer 2.05 billion shares at a nominal value of Rp 100 each, via lead underwriter PT ABN Amro Asia Securities Indonesia. It hasn't yet set the price for the shares.

The lender, which is owned by various cooperatives including those of the armed forces, said that it will use 70 percent of the proceeds to boost lending, 15 percent to open new branches, 10 percent to upgrade its information technology, and 5 percent to fund human resource development.

It has 261 branch offices and outlets across Indonesia as of end 2004. It booked Rp 210 billion in net profit in 2004, up 17 percent from Rp 180 billion a year earlier.-- Dow Jones