Bank Ekonomi to offer new shares

JAKARTA (Jakarta Post): Privately owned PT Bank Ekonomi Raharja is set to sell 270 million new shares, representing about 10.11 percent of its total shares, to support increased lending to small and medium enterprises.

Director Lenggono Sulistianto Hadi said Monday that the new shares, the issuance of which was being underwritten by PT Dinamika Usahajaya, would be sold at Rp 100 each during the offering period on Dec. 17 to 19.

The bank will list the shares on the Indonesia Stock Exchange on Dec. 28, and is hoping to make about Rp 300 billion from the initial public offering, with 70 percent of the proceeds being used to finance additional lending to SMEs, Lenggono told a media briefing.

He said the remainder would be used to finance network expansion, and to further develop the bank's technological system and human resources.

The bank, which is now 18 years old, expects to increase its net profit to Rp 172.71 billion this year from Rp 150.15 billion in 2006, Hendrik added. (ndr)