LIPPO GROUP BANK LISTED SHARES ON INDONESIA STOCK EXCHANGE

PT Bank National Nobu, Tbk (NOBU) listed its shares on the Indonesia Stock Exchange (IDX). At the opening of stock trading on Monday (5/20), NOBU shares reached its highest point at Rp460 per share.

               

The company which sells as much as 2.15 million shares sets an initial price at Rp375 per share. Up to 11:28 West Indonesia Time, NOBU shares moved up to Rp. 425 per share. Stock listed on the main board had touched a highest level at Rp480 per share.

               

The company will sell its shares to the public. The bank is targeting Rp700.3 billion – 862 billion of funds from the Initial Public Offering (IPO). The bank, which is owned by the Lippo Group, will sell 2.15 billion shares, equivalent to 52% of the issued and fully paid capital. Nobu Bank’s IPO price is around Rp325 – 400 per share.

               

Nobu Bank is a subsidiary company of Lippo Group who listed its stocks with stock ticker NOBU and become the ninth issuer who listed its stocks in 2013. Overall, NOBU is a 464^th issuer listed on the Indonesia Stock Exchange.

               

Based on IDX’s data, the company listed a total of 4.19 billion shares with a composition of 2.15 billion shares of the stock offering or IPO and its 1.99 billion shares.

               

Nobu Bank earned IPO proceeds of Rp808.43 billion with its IPO price at Rp375 per share and a par value of Rp. 100 per share. Thus, with the market capitalization before the initial listing is Rp1.53 trillion. The number of shareholders is 1,425 investors. NOBU shares were listed on the main board of IDX trading. PT Ciptadana Securities acts as the lead underwriter.

               

President Director of PT Ciptadana Securities, Ferry Budiman Tanja, said that the stock valuation reflects the price-to-book value (PBV) of 2.56 to 3.1 times. For comparison, the current PBV is about 3-4 times. The price also reflects price-to-earnings ratio (PER) of 2013 at 20.8 – 25.6 times.

Valuation above the Market Price

               

Ferry admitted that based on PER, share valuation of NOBU shares in the IPO is above the average PER of the banking industry. But, NOBU dares to determine valuation above the market price because the bank has a relatively good growth in the short and long terms. “This growth cannot be compared apple-to-apple against established banks. “The growth of Nobu Bank is very fast”, he said.

               

According to him, in the next few years, PER of Nobu Bank will continue to decline along with increased performance. He believes that although the stock price is above market valuation, NOBU shares will be hunted by investors. The company offers more shares to institutional investors.

               

OSO Securities analyst, Supriyadi, said that Nobu Bank IPO price too premium. Of the range of price offered, the price ratio compared to price-to-book value (PBV) is 2.56 – 3 times. Whereas in the calculation, the bank has as asset of under Rp 10 trillion and it has an average PBV of 1.85 times. If IPO shares were sold at a premium price, Nobu Bank share movement will potentially adjust to the average price of the industry. “It has the potential to be corrected”, Supriyadi said.

               

Suhaimin Djohan , President Director of Bank Nobu, explained that NOBU will use the IPO proceeds for expansion of credit. The other half will be used to raise capital. Nobu Bank wished to increase capital to Rp1 trillion. Therefore, it will continue to expand into a foreign exchange bank, issuing credit cards and becoming a mutual fund dealer.

               

The bank also intends to open 30 branches by the end of this year, so the total branches could reach 70 offices at the end of this year. “With the expansion of branch offices, penetration into Small and Medium Enterprises (UKM) will be more evenly distributed throughout Indonesia”, Suhaimin said on Tuesday (5/16). So far, Bank Nobu is focused on lending to the SME segment. “With branch expansion, penetration to SME  will be more evenly distributed throughout the country”, he said.

               

Based on IDX data, during the IPO, the company was able to earn funds of Rp. 808.4 billion at the offer price of Rp375 per unit. Shares of Nobu Bank will be trade on the main board with the code “NOBU”. As of December 2012, Bank Nobu had an asset of Rp1.21 trillion and liabilities of Rp961.4 billion.

               

After the IPO, the composition of the shareholders of Nobu Bank consists of PT Kharisma Buana Indonesia 24.12 percent, Nio Yantony 9.65 percent, PT Prima Cakrawala Sentosa 5.08 percent, PT Lippo General Insurance Tbk 5.08 percent, PT Putera Mulia Indonesia 4.06 percent, and 52 percent the public.(E)

Business News - May 22,2013