Management of BBRI - Photo by PT Bank Rakyat Indonesia Tbk

JAKARTA (TheInsiderStories) – PT Bank BRISyariah Tbk targeting to raise Rp1.7 trillion (US$124.09 million) from initial public offering (IPO). The company set the indicated price of the IPO at the range Rp500 to Rp650 a share.

An Islamic bank under state-owned lender PT Bank Rakyat Indonesia Tbk (IDX: BBRI), offered 2.62 billion shares or 27 per cent of total issued and paid up capital. The offering period will run from April 5 to 20, offering period May 2 to 4 and listing in the same month.

BRISyariah president director M. Hadi Santoso in a public expose on Thursday (05/04) said, the company will list it shares in the first semester of 2018 at Indonesia Stock Exchange.

The company has appointed PT Bahana Sekuritas, PT CLSA Sekuritas Indonesia, PT Danareksa Sekuritas, and PT Indo Premier Sekuritas as joint lead underwriters for the IPO.

He said, the IPO is next step series of BRISyariah’s corporate action after managed Sukuk Subordinated loan in 2016 with total amounts Rp1 trillion. Santoso pointed out, most of the IPO’s proceed to boost its financing offering.

He also emphasizes, the IPO is strategic step for the company become the largest sharia bank in Indonesia.

“We aim to become a game changer for sharia banking in Indonesia through more rapid sharia business expansion especially in boosting financing by providing retail-based financing, infrastructure and comercial,” said Santoso.

BRISyariah was established on Nov. 17, 2009 as part of BBRI’s goal to offer complete banking services to the country. Currently, the local bank operates 272 office and 500 ATMs.

The banking and sharia industry in Indonesia offers enormous prospects. Data from the Financial Services Authority indicate that penetration in terms of national banking assets was at 5.74 per cent in 2017.