Govt to increase Bank Mandiri IPO sale to 20%

Govt to increase Bank Mandiri IPO sale to 20%

Dow Jones
Jakarta

The government is planning to increase the size of Bank Mandiri's
initial public offering to a 20 percent stake from 15 percent due
to the good response from investors during the recent pre-
marketing of the issue.

"We have met the underwriters for the IPO who reported the
government's plan to increase the stake size of Mandiri's IPO by
5 percent," Noor Rachman, a senior official at the Capital
Market Supervisory Agency (Bapepam), said on Friday.

Under the new plan, the government will sell 4 billion shares
in Bank Mandiri, the country's largest bank in terms of assets,
with an indicative price between Rp 568.8 rupiah and Rp 695.2 a
share.

PT ABN Amro Asia Securities and PT Danareksa Sekuritas are
joint underwriters of the issue.

The offer period is expected to be July 2-4, with share
allocation July 9 and listing of the shares on the Jakarta Stock
Exchange July 14.

The government had planned to raise between Rp 1.5 trillion
and Rp 2 trillion from the IPO. Analysts said the increase in the
size of Mandiri's IPO may allow the government to raise up to
about Rp 2.8 trillion.

The government had originally planned to offer a 30 percent
stake in the country's largest lender, but concerns about a
protracted war in Iraq caused the government to cut it to 15
percent in March. Recent bullish sentiment toward Indonesia has
helped boost appetite for Bank Mandiri's IPO.

Foreign investors are expected to take around 70 percent of
the shares, while local investors would subscribe for the rest.