JAKARTA. PT Bank Pembangunan Daerah Sumatera Utara (Bank Sumut) will shortly conduct its initial public offering (IPO) following the pre-effective statement issued by the Financial Services Authority (OJK) on January 3, 2023. The IPO, which is scheduled to take place in early February 2023, will offer 2.93 billion shares to the public, aiming to raise up to IDR 1.49 trillion of fresh funds.

In the prospectus released today (5/1), Bank Sumut is said to offer series B shares of IDR 250 each for IDR 350 to 510 per share. In her written statement, Arieta Aryanti, Director of Finance and Information Technology of Bank Sumut, mentioned that IPO is one of the company’s strategy to boost the performance and assets of this North Sumatra regional bank.

At least four security companies will step in as underwriters in this IPO. They are PT Aldiracita Sekuritas Indonesia, PT BRI Danareksa Sekuritas, PT RHB Sekuritas Indonesia, and PT UOB Kay Hian Sekuritas. Bank Sumut will also hold an Employee Stock Allocation (ESA) and Management and Employee Stock Option Programme (MESOP).

Bank Sumut plans to utilise approximately 80% of IPO proceeds as its working capital for credit channelling. Another 20% will be spent on expanding the network and upgrading the information technology.

Below are the schedules of IPO of Bank Sumut:

Estimated bookbuilding phase: January 5-18, 2023

Estimated effective statement from OJK: January 30, 2023

Estimated public offering: February 1-3, 2023

Estimated allotment date: February 3, 2023

Estimated date for electronic shares distribution: February 6, 2023

Estimated date for stock listing on Indonesia Stock Exchange (IDX): February 7, 2023. (AM/ZH)