(Dec 17): Digital banking firm PT Super Bank Indonesia surged 24%, hitting the daily trading limit, on its Jakarta debut on Wednesday following an initial public offering (IPO) that ranks as Indonesia’s second largest this year.
The unit of Indonesian conglomerate PT Elang Mahkota Teknologi saw its shares rise to 790 rupiah, up from its IPO price of 635 rupiah. Super Bank raised 2.8 trillion rupiah (US$168 million or $216.44 million) through the offering by selling approximately a 13% stake.
The strong debut underscored investor appetite for first-time share sales in Jakarta, following heavyweight listings such as PT Merdeka Gold Resources and PT Chandra Daya Investasi that also hit the trading limit. Local stocks have been rallying on strong domestic demand, with the benchmark up about 20% this year and touching multiple record highs in recent months.
Super Bank, backed by app platform Grab Holdings Ltd, had been considering a public offering this year, Bloomberg News reported in January. Singapore Telecommunications Ltd, known as Singtel, and KakaoBank Corp were among the backers of the lender, whose business history traced back to 1993, when it was known as PT Bank Fama International.
Super Bank plans to use the IPO proceeds as working capital for loan disbursements and capital expenditure, including for development of products and information-technology systems.
The IPO was oversubscribed by more than 300 times, with orders exceeding one million, according to a statement from one of the underwriters.
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