IPO to raise Rp 150b for Bank Mega
IPO to raise Rp 150b for Bank Mega
JAKARTA (JP): PT Bank Mega announced on Monday its plan to sell 112.5 million shares or about 20 percent of its enlarged shares to the public next month to raise funds for its expansion program.
Bank Mega president Achjadi Ranuwisastra said the bank expected to raise between Rp 100 billion (about US$13 million) and Rp 150 billion from the initial public offering (IPO).
The shares, with a nominal value of Rp 500, will be sold at between Rp 1,000 and Rp 1,500 each, he said, adding that the shares would be listed both on the Jakarta and Surabaya stock exchanges.
"We plan to conduct roadshows in several major cities including Hong Kong and Singapore," Achjadi said during a media conference.
PT Danareksa Sekuritas and PT Trimegah Securities would act as underwriters, he said.
He said 40 percent of the IPO proceeds would be used to develop the bank's information technology, 25 percent would be for business and infrastructure expansion, while the remaining 35 percent would be channeled as credits.
"For this year we plan to expand our branches from the current 30 to 90 throughout Indonesia," he said.
The bank's net profit jumped to Rp 149 billion in 1998 from only Rp 7 billion in 1997. But net earnings plunged to Rp 50 billion last year. The bank projects to book a net profit of between Rp 70 billion and Rp 120 billion this year.
The bank channeled Rp 498.8 billion in credit last year, of which 38.9 percent went into the industrial sector, 22.4 percent into agribusiness, 18 percent into the construction sector, 10.1 percent into the textile sector.
Bank Mega's chief commissioner Chairul Tandjung said he was optimistic that the bank's IPO would receive a positive response from investors despite the planned IPOs of two major state banks, Bank Mandiri and Bank Central Asia (BCA), in the same month.
"There is no competition whatsoever with BCA in getting public funds," Chairul said.
After going public, Bank Mega will be 79.9 percent owned by PT Para Global Investindo, which took over the bank in 1996, 0.01 percent by PT Para Rekan Investama and 20 percent by the investing public.(03)