09 July 2013, Victoria, Bank Mestika shine on IDX

Welcome to the market: Indonesia Stock Exchange (IDX) president director Ito Warsito (right) talks to (from left) PT Bank Mestika Dharma president director Achmad S. Kartasasmita, PT Multipolar Technology president director Harijono Suwarno, PT Victoria Investama president director Aldo Jusuf Tjahaja during their listing at IDX in Jakarta on Monday. JP/Nurhayati

Investment holding company PT Victoria Investama and lender PT Bank Mestika Dharma gained positive results on their first trading day at the Indonesia Stock Exchange (IDX) on Monday amid a market slowdown.

Victoria’s shares, sold under the code VICO, opened at Rp 140 (1 US cent) apiece, 12 percent higher than its initial public offering (IPO) price, which stood at Rp 125 per share.

It was able to maintain its momentum and ended at Rp 210, rising by half from the opening price and up 68 percent from the IPO price.

From its IPO, which was held from June 28 to July 2, the company managed to gain Rp 150 billion by releasing 1.2 billion new shares, equal to 16.3 percent of its enlarged shares.

Most of the proceeds from the IPO will be disbursed to its subsidiaries, according to Victoria president director Aldo Jusuf Tjahaja.

It will channel 17.1 percent of the funds to pay off its junior convertible loans, 33.3 percent to inject additional capital to subsidiary PT Victoria Securities Indonesia, 13.3 percent as capital to subsidiary PT Victoria Insurance, 34 percent for warrants issuance under subsidiary PT Bank Victoria International and the other 2.3 percent as Victoria’s own working capital.

“The additional Rp 20 billion capital to Victoria Insurance is part of our attempt to meet the OJK’s [the Financial Services Authority] regulation, which requires a general insurance company to have a minimum capital of Rp 100 billion by 2014. Right now, its capital still stands at Rp 80 billion,” he said in Jakarta.

On the same day, Mestika saw its shares climb to Rp 1,450 per share during the opening session. The price was 5.1 percent higher than its IPO price, which was set at Rp 1,380.

The shares stayed between Rp 1,550 and Rp 1,570 throughout the day and closed at Rp 1,560 apiece. The closing price grew 7.6 percent from the opening session and 13 percent higher from the IPO price.

The Medan-based bank off-loaded 430 million shares or 10.5 percent of its enlarged shares, to the public and generated Rp 593.4 billion in fresh funds for credit expansion and additional capital.

Mestika president director Achmad Suherman Kartasasmita said this year, the bank would increase its loans by 13 percent to Rp 6.2 trillion.

Its third-party funds (DPK) are also expected to grow by between 23.5 percent and 25.5 percent to reach around Rp 6.3 trillion to Rp 6.4 trillion.

“To support the target, we will open three new branches in the Jabodetabek [Greater Jakarta] area. We already opened one branch in Jambi recently,” Achmad said.

He added the bank’s current majority shareholder, PT Mestika Buana Mas, was still working with Malaysia’s RHB Capital Berhad regarding the latter’s plan to acquire a 40 percent stake of Bank Mestika.

“The necessary documents required by the authority are still being prepared. The deadline has been extended for three months,” he said.

RHD, Malaysia’s fourth-largest lender, initially eyed 80 percent ownership within Mestika, but had to cut down its target due to a Bank Indonesia’s regulation that limited foreign ownership in a bank to a maximum of 40 percent.

Meanwhile, the Jakarta Composite Index (JCI), the main benchmark of the IDX, ended in the red again on Monday.

The index stood at 4,433.63, down 3.7 percent from last Friday, driven by a decline in all sectors. The foreign sales were recorded at Rp 971.8 billion, which led to the foreign net sell-to-date figure standing at Rp 3.98 trillion.