CIMB & Bahana underwrite Bank Jabar IPO

PT Bank Jabar Banten appointed two securities companies to handle the initial public offering scheduled by end of the year.
My source said the company assigned CIMB Securities Indonesia and Bahana Securities as the underwriter for Bank Jabar IPO.
Formerly there were 10 securities companies competing for being underwriter of Bank Jabar IPO.
"Two underwriters here jointly with Bank Jabar prepare IPO scheme," he said yesterday.
Corporate Secretary of Bank Jabar Banten Endang Ruhiyat said the company has undergone final step for the selection of securities companies assisting the IPO.
He could hardly name the appointed brokers and said there would be two underwriters. "The selection has been finalized and we will make official announcement," he said.
The target of IPO is temporarily to tap some IDR720 billion but it might increase when there is regional government capital injection prior to the IPO execution.
The company has submitted the IPO document to the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) in the near future and planned to finalize the corporate action this year.
Bank Jabar is likely to get IDR200 capital participation of the West Java provincial government through the amended Regional Budget 2009.
The company has just issued IDR750 billion bonds in the Indonesia Stock Exchange (IDX) as from the former DIR1.5 trillion scheme due to the investor's higher demand for yield.
The current composition of shareholders includes the West Java provincial government with 42.62 percent shares possession, West Java regency/municipality with 34.08 percent, Banten provincial government 7.93 percent, and Banten regency/municipality 11.37 percent.
Bank Jabar last year booked 0.8 percent non performing loan (NPL) or the second lowest following PT Bank Central Asia Tbk and under the average industry rate of 3.8 percent.
Analyst of PT Bahana Securities Teguh Hartarto and Andry Asmoro on Bank Jabar research on 20 June projected the Indonesia GDP this year is 3.4 percent and to grow by 4.5 percent next year with the major backup of housing consumption and government spending.
The credit growth is deemed promising due to the credit to gross domestic product ratio is 26.5 percent, or lower than that of in Philippines 39 percent, Thailan 82.9 percent, and Malaysia 98.8 percent.