Bank BRIsyariah made its trading debut on the Indonesia Stock Exchange (IDX) today, hence becoming the 11th company to have completed its initial public offering (IPO) in Indonesia so far in 2018. It is the first Islamic finance unit of a state-controlled entity (Bank Rakyat Indonesia) to have listed on the IDX. Charles Bowman, Lord Mayor of the City of London, was present at the listing ceremony at the IDX building on Wednesday morning (09/05).
Bank BRIsyariah released 2.6 billion new shares, equivalent to 27 percent of the company's issued and fully paid-up capital, for a price of IDR 510 (approx. USD $0.04) a piece. The Islamic finance unit's IPO proved popular among investors as it was oversubscribed two times. The company raised IDR 1.34 trillion (approx. USD $95.7 million) through the corporate move.
With the fresh funds that were obtained from the IPO, Bank BRISyariah is set to rise into the ranks of a BUKU III category bank (this term refers to banks that have a core capital between IDR 5 trillion - IDR 30 trillion). Around 80 percent of the IPO proceeds will be used to increase funds for the company's credit disbursement. About 12.5 percent will be used for the development of an information technology system. Meanwhile, the remaining 7.5 percent will be used for branch network development from Sabang (Sumatra) to Merauke (Papua), meaning all around Indonesia.
The performance of BRIsyariah's shares was not too impressive on its first day as they only rose 6.86 percent to IDR 545 a piece. This is an mediocre result compared the performance of other companies' shares when making their trading debut on the Indonesia Stock Exchange.
Haru Koesmahargyo, Finance Director of parent company Bank Rakyat Indonesia (BRI), added there is a big possibility that the parent company will not inject capital anymore into Bank BRIsyariah.
So far in 2018, a total of 11 companies have been added to the Indonesia Stock Exchange: telecommunication construction services company LCK Global Kedaton, coal miner Borneo Olah Sarana Sukses, helicopter transportation services company Jaya Trishindo, solar panel manufacturer Sky Energy Indonesia, trade, transportation and logistics services provider Indah Prakasa Sentosa, telecommunication support services company Gihon Telekomunikasi Indonesia, chemical manufacturing company Tridomain Performance Materials, property developer Dafam Property Indonesia, investment company Charnic Capital, and financial institutions Bank Tabungan Pensiunan Nasional Syariah and Bank BRISyariah.
Last Update: 19 Oct 2018
IPOs on the Indonesia Stock Exchange up to 09 May 2018
|Company||P: 19 Oct 2018||P: 18 Oct 2018||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|LCK Global KedatonLCKM||312||312||0.00%||N/A||0.00%||0.00%|
|Borneo Olah Sarana SuksesBOSS||2,600||2,620||-0.76%||N/A||0.00%||333.33%|
|Sky Energy IndonesiaJSKY||870||865||0.58%||N/A||0.00%||45.00%|
|Indah Prakasa Sentosa Tbk.INPS||2,050||2,050||0.00%||N/A||0.00%||395.17%|
|Gihon Telekomunikasi Indonesia Tbk.GHON||1,265||1,265||0.00%||N/A||0.00%||-27.92%|
|Tridomain Performance Materials Tbk.TDPM||314||310||1.29%||N/A||0.00%||-8.19%|
|Dafam Property Indonesia Tbk.DFAM||1,365||1,320||3.41%||N/A||0.00%||600.00%|
|Charnic Capital Tbk.NICK||159||138||15.22%||N/A||0.00%||-53.24%|
|Bank Tabungan Pensiunan Nasional Syariah Tbk.BTPS||1,680||1,670||0.60%||N/A||0.00%||15.07%|
|Bank BRIsyariah Tbk.BRIS||560||560||0.00%||N/A||0.00%||2.75%|
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available