It is raining IPO news in Indonesia even as the country is expecting at least 35 companies to make the market debut in 2016. The country saw barely 20 companies raising about $1 billion through their offerings in 2015. State-owned energy company PT Pertamina is planning a share sale of three of its subsidiaries while PT Bank Sinarmas Tbk (BSIM), a small-sized lender of conglomerate Sinar Mas Group, plans to sell 7.8 per cent of its enlarged capital in May to support its loan expansion.
Pertamina considering IPO of 3 subsidiaries
Indonesia’s state owned energy company Pertamina is considering share sale through initial public offering of three of its subsidiaries, which are not engaged in the oil and gas business, on the Indonesian Stock Exchange (IDX).
The three subsidiaries are insurance firm PT Tugu Pratama Indonesia, hotel chain firm PT Patra Jasa and hospital subsidiary PT Pertamina Bina Media. “Tugu Pratama, Patra Jasa and RS Pertamina are being considered for IPO,” Pertamina President Director Dwi Soetjipto told DEALSTREETASIA.
The financial reports of these companies are being audited. The company expects to make a decision next month on the schedule of the listing.
Pertamina currently owns seven out of 18 subsidiaries that are operating in the non-oil and gas sectors. Pertamina controls 65 per cent shares of Tugu Pratama, one of the largest general insurance companies in Indonesia.
Bank Sinarmas plans rights issue
Bank Sinarmas plans to sell 7.8 per cent of its enlarged capital in May through a rights issue. The proceeds of the planned rights issue will be used to support its loan expansion plans, the bank’s President Director Freenyan Liwang said, in a statement.
Liwang said, Sinarmas aspires to become a third-tier bank and would be short of Rp 1.6 trillion (US$115 million) to comply with the third-tier capital requirement of Rp5 trillion by the end of this year, according to the lender’s projections.
The shareholders would meet to approve the plan (rights issue) on February 29, Freenyan said. Sinarmas would distribute the shares to rights holders on May 12, and it plans to list the new shares on the bourse on May 31.
Earlier, PT Sinar Mas Multiartha Tbk (SMMA), the holding company of Sinarmas Group’s financial units, announced its plan to raise Rp 3.1 trillion from selling shares next year to new investors, to beef up capital in its subsidiaries. SMMA currently holds 57.15 per cent in Bank Sinarmas, while the public holds 40.08 per cent. The remainder is held by a local firm called Shinta Utama.