Bank Jatim expects to raise up to Rp 1.9 trillion or US$212 million from an IPO to be launched in July.
The bank would sell 20 percent of its enlarged shares to the public during an offering period on July 3 – 5, according to Bank Jatim’s president director, Hadi Sukrianto.
Hadi said he was optimistic that the bank’s IPO would receive a positive response from investors despite the bearish conditions on the local stock market.
The bank plans to sell the shares at between Rp 430 and Rp 670 per share, and they will be listed on the Indonesia Stock Exchange on July 11.
Bahana Securities and Mandiri Sekuritas have been named the underwriters for the IPO.
According to Hadi, 80 percent of the IPO proceeds will be used for credit expansion, which will be focused more on providing loans to small and medium enterprises.
“We are aiming to increase our profits to Rp 1.2 trillion this year, and we are hoping our CAR will increase to 16 to 17 percent by 2016,” said Hadi.
He also said that 10 percent of the IPO proceeds would be allocated for branch expansion, while the remaining 10 percent would be used to support IT development in the company.
“We will still focus our branch expansion on East Java. The 25 new branches that will be opened this year will primarily be located in East Java, with just three branches opening in Jakarta,” he said, adding that the investment value of each branch would reach up to Rp 1 billion.
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