MEDAN. PT Bank Pembangunan Daerah Sumatra Utara Tbk (BSMT) is eyeing fresh funds of IDR 1.49 trillion from its initial public offering (IPO), which will be used to enhance its credit channeling and business digitalisation.

According to Hadi Sucipto, Acting President Director of BSMT, approximately 80% of IPO proceeds will be channelled to its working capital. It includes the distribution of working capital credit, investment credit, and consumer credit. “The remainder will be spent on network extension as well as information technology development to boost its performance, including digital services,” he explained in today’s (9/1) press conference.

Out of those 20%, 10% will be utilised as its capital expenditure, covering costs for acquiring and leasing office spaces. Then, another 10% will be spent on upgrading ATM network, service digitalisation, and security system enhancement.

The roadshow and book building of BSMT’s IPO will take place from January 5 to 18, 2023, before the main public offering follows on February 1-3, 2023. The listing on Indonesia Stock Exchange (IDX) will conclude the process on February 7, 2023.

As mentioned in the issued prospectus, BSMT will offer 2.93 billion shares in its upcoming IPO. Each share has a face value of IDR 250, but will be offered within the price range of IDR 350 to IDR 510 per share. BSMT has appointed PT BRI Danareksa Sekuritas, PT RHB Sekuritas Indonesia, PT UOB Kay Hian Sekuritas, and PT Aldiracita Sekuritas as joint lead underwriters.

In 2022, BSMT had collected third-party funds of IDR 31.9 trillion, while maintaining the collectability level of its credits, boasting the non-performing loan (NPL) ratio at 1.21%. (KR/ZH)