Bank Nationalnobu, a small lender, is set to raise Rp 810 billion ($83.5 million) in fresh funds from an initial public offering this week, it announced on Monday.
Mario Satrio, corporate secretary of the company that trades as Bank Nobu, said on Monday that it has set the IPO price at Rp 375 per share, within its original window of between Rp 325 and Rp 400 per share announced amid a book building last month. “[The price] is close to the upper price range, indicating that there is optimism in Bank Nobu’s future prospect,” he said.
Bank Nobu is offering 2.16 billion shares, or about 52 percent of the total capital, to investors this week. At Rp 375 per share, the lender will rake in Rp 810 billion from the IPO.
Last month, on the first announcement of the IPO price range, Ferry Budiman Tanja, president director of underwriter Ciptadana Securities, said the higher end of the price range represented 25 times price-to-earnings ratio, higher than the banking industry average on Indonesia Stock Exchange (IDX) at that time, suggesting the new shares would be expensive.
The bank’s offering opened on Monday and ends today, while its listing is scheduled to be held next Monday.
The offering and listing were delayed from the timeframe outlined earlier this month due to administrative problems, Mario said. The bank was initially scheduled to be listed on IDX last Wednesday.
Funds from the IPO will be used to expand Bank Nobu’s financing business and to meet the central bank’s capital requirements in order to expand the categories of banking services it can offer.
The IPO funds will help the bank reach Rp 1 trillion worth of capital, which as per Bank Indonesia’s regulation will allow it more flexibility in banking businesses.
Bank Nobu’s IPO comes amid bullish sentiment in the local market, with the main stock gauge, the Jakarta Composite Index, recently breaking the 5,000 mark.
Bank Nobu was formerly known as Bank Alfindo before it was acquired by Mochtar Riady, patriarch of the Lippo Group, through Kharisma Buana Nusantara.
The Jakarta Globe is affiliated with the Lippo Group.