(Indonesia) Interest in the initial public offering of Indonesian government-owned Bank Mandiri has seen the issue more than six times oversubscribed.The original IPO of ten percent of the bank would have been Indonesia’s largest equity issue since the Asian financial crisis of 1997/98.
However, underwriters recommended the Indonesian government raise the size of the issue to 20 percent in light of massive interest displayed at roadshows in Europe and Asia. Foreign interest has been sparked by Indonesia’s booming stock market and growing domestic consumption as well as by the country’s stable currency.
The sale, which forms part of the Indonesian government’s IMF-led economic reforms, is tipped to raise more than US$320 million for the cash-strapped government.
Bank Mandiri was formed in 1998 after four banks merged following the financial crisis.