Logistics firm Indah Prakasa Sentosa has announced that it is targeting to raise $3 million from its IPO while the country’s Financial Services Authority (OJK) said it would give the go-ahead to Japan’s Mitsubishi UFJ Financial Group to acquire a majority stake in Bank Danamon Indonesia with some riders.
Logistics firm Inprase targets $3m from IPO
Trading, transport and logistics firm Indah Prakasa Sentosa (Inprase) will be looking to raise $3 million through an initial public offering (IPO) on the Indonesian Stock Exchange (IDX).
In a statement published at the Indonesian Central Securities Depository (KSEI), Inprase said, it will offer up to 250 million new shares priced at Rp 276 apiece. The listing date is slated for April 6.
It was previously reported that the company will use around 44% fund from the IPO to acquire the shares of Jono Gas Pejagalan, a company owned by an affiliate firm in the LPG industry. The remaining 56% will be used for additional capital expenditure.
Meanwhile, another logistic firm Trimuda Nuansa Citra has also recently announced that it is planning to file for IPO soon and targets to be listed by June.
OJK allows Japanese firm MUFG’s acquisition of Bank Danamon
Indonesia’s Financial Services Authority (OJK) has said it would allow Japan’s Mitsubishi UFJ Financial Group to acquire a majority stake in local lender Bank Danamon Indonesia if the foreign investor agrees to merge the bank with another local lender already under its ownership.
A 2016 OJK regulation generally limits foreign ownership of Indonesian banks to 40 per cent. However, one of the exceptions to this is if the investor plans to acquire two or more banks to merge them together. The exception was made as part of the authority’s efforts to try and trim the number of local banks that currently exceed 110.
Mitsubishi UFJ Financial Group, which is looking to acquire a 73.8 per cent stake in Bank Danamon through its subsidiary The Bank of Tokyo Mitsubishi, already owns small local lender Bank Nusantara Parahyangan.
Speaking to local reporters recently, OJK’s banking supervisory division head, Heru Kristiyana said the agency will approve the acquisition plan if the Japanese company agrees to merge the two lenders into a single entity.
Other foreign banks from the region that have disclosed interest in acquiring Indonesian banks include Japan’s Sumitomo Mitsui Financial Group (SMFG) and Industrial Bank of Korea.