PT Bank Umum Servitia to issue 40m new shares

PT Bank Umum Servitia to issue 40m new shares

JAKARTA (JP): PT Bank Umum Servitia will issue 40 million new
shares, which will make up 20 percent of its total shares, in an
initial public offering (IPO) this month.

Gunawan Yusuf, president of PT Makindo, the lead underwriter
of the planned issue, said yesterday that the new shares will
have a price-earning ratio of between six to ten.

He declined to quantify the total fresh funds the bank
expected to receive from the share offering.

Gunawan said 65 percent of the IPO proceeds will be used to
strengthen the bank's capital structure, 15 percent to finance
the expansion of its operating network, 15 percent to enhance on-
line computer technology and the remaining 5 percent for human
resource development.

Gunawan said that in the past five years Bank Servitia has
recorded a compounded annual growth rate of 35 percent in
operating revenue, from Rp 14 billion (US$5.94 million) in 1991
to Rp 48 billion last year.

The bank achieved an 85 percent annual growth in net profit,
which rose from Rp 800 million in 1991 to Rp 9.4 billion in 1995.

The bank recorded Rp 18 billion in net revenue and Rp 5
billion in profit in January to April this year.

Gunawan said net interest accounted for 78 percent of the
bank's total revenue in 1995, compared to 82 percent in 1994.
Fee-based income accounted for 18 percent in 1995 against 17
percent in the previous year.

Bank Servitia's total assets on April 30, 1996, were Rp 1
trillion, compared with Rp 951 billion at the end of 1995. Its
total lending reached Rp 810 billion, while its total deposits
were Rp 727 billion.

Gunawan said the bank's capital adequacy ratio was 9.3 percent
on April 30, and its loan to deposit ratio reached 93.6 percent.

Bank Servitia operates 13 branch offices and 30 sub-branch
offices in eight major cities in Java and Sumatra. (alo)