BRISyariah, a subsidiary of state-owned lender Bank Rakyat Indonesia (BRI), is seeking to raise between $94 million and $119 million through an initial public offering (IPO) after announcing that it will offer its shares at a range of Rp 505-Rp 650 apiece.
As stated in the BRISyariah IPO prospectus, the public offering will see the lender sell as many as 2.62 billion shares, equivalent to a 27 per cent stake.
The bank disclosed that its preliminary offer period will be held from April 5 to 20 before its estimated date of public offering from May 2 to May 4. It expects to list on the Indonesian Stock Exchange (IDX) on May 9.
Of the IPO proceeds, as much as 80 per cent will be used for financing, while 12.5 per cent will be allocated for IT development in the bank’s core banking system, electronic channel, network infrastructure, support system, digital banking and big data.
The remaining 7.5 per cent, meanwhile, will be used to grow the office network by opening up branches and supporting branches in a number of regions.
The lender also said that it has appointed PT Bahana Sekuritas, PT Danareksa Sekuritas, PT CSLA Sekuritas Indonesia and PT Indo Primier Sekuritas as underwriters for the IPO.
BRISyariah is one of three sharia banks planning to list on the IDX. The other two are Bank Mandiri-subsidiary Bank Syariah Mandiri, which plans to list by 2019, and private lender Bank Bukopin that aims to list by 2020.
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