The country’s biggest initial public offering this year, by state-owned PT Bank Tabungan Negara, has been massively oversubscribed, State Owned Enterprises Minister Mustafa Abubakar said on Friday.
BTN, the country’s largest home loan creditor, is offering 2.36 billion shares to the public, amounting to 27 percent of its equity. The share price has been set within a range of Rp 750 to Rp 1,100 (8 cents to 11 cents) per share, meaning BTN will raise between Rp 1.8 trillion and Rp 2.6 trillion.
The IPO attracted Rp 3.5 trillion of subscriptions, Mustafa said.
“BTN’s offer has been well received by potential investors during the road show,” he said.
BTN will offer the shares to investors on the primary market on Thursday and Friday, followed by a listing on the Indonesia Stock Exchange (IDX) on Dec. 17.
The state-owned bank has allocated 60 percent of the stock offered to local companies, with international buyers allocated the remaining 40 percent.
Several large investors have already committed to purchase sizeable stakes, Mustafa said.
“PT Jamsostek [a state-owned social security provider] is one of the biggest buyers of the BTN stock. We welcomed Jamsostek’s move because it will be positively accepted by local investors,” he said.
Jamsostek manages funds worth about Rp 78 trillion.
“The Government of Singapore Investment Corporation is one of the potential large international buyers,” Mustafa said.
The Singaporean government’s global investment management company manages around $100 billion. It invests in equities, fixed income, natural resources, treasury and currencies, real estate, and infrastructure.
BTN’s IPO has been delayed for several years as it waited for approval from the House of Representatives, which it received last year.
The bank said in a statement that all of the proceeds from the IPO would be used to support lending expansion in the coming years.
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