Indonesia's Bank DKI said to be raising up to $200m in local IPO: report

Indonesia's Bank DKI said to be raising up to $200m in local IPO: report

Indonesia’s regional development bank, Bank DKI, is said to be targeting an initial public offering (IPO) to raise anywhere between $150 million and $200 million on the local bourses, Bloomberg reported on Friday.

The lender is expected to go public as soon as this year. Currently, they are working with PT BCA Sekuritas and PT CIMB Niaga Sekuritas Indonesia on the potential listing as well as PT Mirae Asset Sekuritas Indonesia and PT Sucor Sekuritas as advisors on the share sale.

Governor of DKI Jakarta Anies Baswedan has been pushing Bank DKI for an IPO since 2019. However, president director of Bank DKI Fidri Arnaldy said the lender is waiting for the right time to hold an IPO, as reported by local media.

DealStreetAsia has reached out to Bank DKI, Mirae Asset Sekuritas, and BCA Sekuritas for comment.

Bank DKI is following its peers Bank Pembangunan Daerah Sumatera Utara, known as Bank Sumut, in tapping the local capital markets. Bank Sumut is looking to raise about 1.5 trillion rupiah ($99 million) through its IPO, and its listing is slated for Feb 7.

IDX’s director of corporate appraisal, I Gede Nyoman Yetna, said that as of Jan 19, 2023, there are 45 IPOs in the pipeline, with two of them from the financial sector. One of the financial institutions is looking to raise more than 1 trillion rupiah ($66 million), he said.

Bank DKI recorded a net profit of 728 billion rupiah in the third quarter of 2022, up 28.83% compared with the same period of 2021. Its loans grew 27% annually to 46.7 trillion rupiah in the third quarter of 2022, while, deposits jumped nearly 30% to 61 trillion rupiah.

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