Bank Maspion Indonesia plans to sell shares through an initial public offering in June to strengthen its capital structure and support loan expansion.
Bank Maspion, controlled by tycoon Alim Markus through his Maspion group, plans to sell 770 million new shares, equivalent to 19.99 percent of Bank Maspion’s enlarged capital.
Makinta Securities has been appointed as underwriter of the share sale. The public offering is scheduled from June 27 to July 1 and the shares are to be listed at the Indonesia Stock Exchange on July 8.
“The proceeds from the IPO, after being reduced by the cost of underwriting, will be entirely used to strengthen the long-term capital structure, to support loan expansion,” Bank Maspion said in a statement on Friday. No offering price and proceeds targets were mentioned in the statement.
Bank Maspion is a small scale lender, controlling only Rp 3.4 trillion worth of assets.
It operates 11 branch offices, 27 sub-branch office, 11 cash offices and 46 automated teller machines located in Surabaya, Jakarta, Semarang, Denpasar, Medan, Bandung, Makassar, Solo, Malang, Purwokerto and Palembang.
The Maspion group is a Surabaya-based conglomerate with interests including electronic and home appliance manufacturing, property and industrial estate development, banking, retail, education, hotels and entertainment centers.
The lender will be the third listed company in the group, joining listed aluminium companies Indal Aluminium Industry and Alumindo Light Metal Industry.
This year, several entrepreneurs have sold off stakes in their companies to tap growing foreign demand for Indonesian portfolio assets. The new listings have led to improved corporate governance and increased transparency with regard to companies’ performances as companies seek to improve their image in the eyes of prospective investors.
Indonesian textile manufacturer Sri Rejeki Isman (Sritex) announced recently it plans to raise up to Rp 2.16 trillion in an IPO by June, of which the proceeds will be used to expand production capacity.
Indonesia is home to more than 120 commercial banks, despite efforts by regulators to promote consolidation.
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