Bank Bukopin to Hold IPO
Wednesday, 07 June, 2006 | 17:02 WIB

TEMPO Interactive, Jakarta: PT Bank Bukopin is carry out its initial public offering with a share price of between Rp350 and Rp520.

The shares will be listed on the Jakarta Stock Exchange as of July this year.

Glen Glenardi, the Managing Director of Bank Bukopin, has stated that a total of 2,049,144,500 or 30 percent of the total shares owned by shareholders.

“The expected funds to be realized from the IPO will be between Rp717 billion and Rp1065 trillion,” Glen told the press after the IPO press conference at the Ritz Carlton Hotel yesterday (6/6).

He explained that the funds will be utilized to strengthen the equity structure.

In the future, the structure will be exploited to increase loan disbursement to micro businesses, to extend Bank Bukopin's network and to develop the IT system.

It is planned that Bank Bukopin will allocate 40-50 percent of the IPO proceeds to small- and medium-sized enterprises, 35-40 percent for commercial loans and 10-15 percent for consumer loans.

In addition, according to Glen, the IPO is also aimed at benefiting Bank Bukopin's in order to become an anchor bank in order to create the possibility of merging with other banks.

“The possibility of merging with other banks remains open, but it's still unclear when will this will be and with which banks we will join,” he said.

When asked for an opinion, David Fernandus, an analyst at PT Anugrah Tiara Sekurindo, stated that the offer time of Bukopin's IPO is not appropriate, for the market situation is not good.

It is affected by the slow movement of economic growth in the United States, yet Indonesia is entering the dividend season.

“It's worsened by many corporations that didn't share their dividends,” David told Tempo.

He explained that the proper moment to enter the market would have been in February or March because market capitalization was good.

According to him, after the IPO the bank’s Capital Adequacy Ratio (CAR) will increase to between of 17 percent and18 percent.

This is a 13.1 percent increase from the December last year when Bank Bukopin's net profit reached Rp257 billion.

Eko Nopiansyah