ABN pulled out from Bukopin IPO
Poor international market respond had pushed ABN Amro out from underwriting the IPO of PT Bank Bukopin Tbk. Local investors might be the saviour.
ABN Amro is reportedly had written a letter to Bukopin management yesterday about the pull out decision. None of ABN Amro and Bukopin executives in Jakarta available for comment.
But people close to the bookbuilding process claimed an oversubscription from local investors.
Today is the closing of bookbuilding process (extended from June 16) for Bukopin shares which initially expecting to raise Rp2 trillion. But the fall of stock market in the last few weeks had cost the company's IPO with most likely reduced size on minimum interest of foreign investors.
"This is nothing to do with Bukopin's performance. It's more about the overall market sentiment," an investment banker said.
PT Bank Bukopin Tbk, a bank controlled by Indonesian government and Logistic Agency's Workers Cooperative, launched an IPO of 32% shares last month.
PT ABN Amro Securities, PT Bahana Sekuritas, and PT Indo Premier Securities are the underwriters of the IPO. ABN Amro was assigned to tap international investors, while Bahana and Indo Premier on local investors.
The bank would use the proceeds to boost loans to SMEs, expand its outlets, and improve human resources quality.
As of Dec 2005, Bukopin has total assets of Rp24.69 trillion (almost US$2.8 billion). The company booked net profit of Rp257 billion last year, increased from Rp210 billion in 2004.
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ABN Amro is reportedly had written a letter to Bukopin management yesterday about the pull out decision. None of ABN Amro and Bukopin executives in Jakarta available for comment.
But people close to the bookbuilding process claimed an oversubscription from local investors.
Today is the closing of bookbuilding process (extended from June 16) for Bukopin shares which initially expecting to raise Rp2 trillion. But the fall of stock market in the last few weeks had cost the company's IPO with most likely reduced size on minimum interest of foreign investors.
"This is nothing to do with Bukopin's performance. It's more about the overall market sentiment," an investment banker said.
PT Bank Bukopin Tbk, a bank controlled by Indonesian government and Logistic Agency's Workers Cooperative, launched an IPO of 32% shares last month.
PT ABN Amro Securities, PT Bahana Sekuritas, and PT Indo Premier Securities are the underwriters of the IPO. ABN Amro was assigned to tap international investors, while Bahana and Indo Premier on local investors.
The bank would use the proceeds to boost loans to SMEs, expand its outlets, and improve human resources quality.
As of Dec 2005, Bukopin has total assets of Rp24.69 trillion (almost US$2.8 billion). The company booked net profit of Rp257 billion last year, increased from Rp210 billion in 2004.
Labels: ABN Amro
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posted by yosef at 3:24 PM
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