Bank Maspion, a lender based in Surabaya, is aiming to raise almost Rp 370 billion ($38 million) in fresh funds through an initial public offering to help finance its business growth.
The company is selling 770 million new shares, equivalent to 20 percent of enlarged capital, with an indicative price range at Rp 360 to Rp 480, the company said in a press statement on Friday.
Based on the pricing range, the bank would raise Rp 277.2 billion to Rp 369.6 billion in proceeds from the IPO.
Book building started on May 24 and will continue through June 11.
Makinta Securities has been appointed as underwriter of the share sale.
The shares will be offered to investors from June 27 to July 1, and Bank Maspion is scheduled to be listed on Indonesia Stock Exchange (IDX) on July 8.
In a briefing with reporters on Friday, Herman Halim, president director of Bank Maspion, said the bank will use all IPO proceeds to strengthen capital structure.
“The fund raised from the IPO will be used for credit expansion in order to grow our business,” Herman said.
Bank Maspion is a small scale lender, controlling only Rp 3.4 trillion worth of assets. It is targeting outstanding loans to grow by 20 percent to 30 percent this year.
Herman did not provide last year’s outstanding loans figure.
Bank operates 11 branch offices, 27 sub-branch offices, 11 cash offices and 46 automated teller machines located in Surabaya, Jakarta, Semarang, Denpasar, Medan, Bandung, Makassar, Solo, Malang, Purwokerto and Palembang.
Bank Maspion is controlled by tycoon Alim Markus through his Maspion group, a Surabaya-based conglomerate with interests including electronics and home appliance manufacturing, property and industrial estate development, banking, retail, education, hotels and entertainment centers.
Bank Maspion would be the 14th company to be listed on the IDX this year. The IDX is targeting to have 30 IPOs this year, up from 23 in 2012.
This year, several large entrepreneurs have sold off stakes in their companies to tap growing foreign demand for Indonesian portfolio assets.
By going public, companies are expected to improve corporate governance and financial transparency.
Earlier this week, investment company Saratoga Investama Sedaya and state-controlled cement-maker also announced their first-ever share sales.
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