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)