September 23, 2002 2:52:02 PM
Bank Kesawan To Launch IPO In November

Bank Kesawan today in a brief prospectus revealed its plan to sell 78,800,000 shares to the public in an initial public offering (IPO) next Nov. 11-13 2002.

The bank has yet to decide the offering price for its shares, which carry a nominal price of Rp 250 per share, during the IPO. As a sweetener in the IPO, Bank Kesawan offers 118,200,000 free first serie warrants for holders of new shares.

Bank Kesawan will attach three free warrants on every two shares. Each warrant entitles its holder to purchase one new share as a discount.

The bank will use 60% of proceeds from the IPO to increase its new loans and the rest 40% to improve human resource development and open new branches.

Bank Kesawan also pledges to pay out cash dividends of 20% to 30% of its net income to the shareholders.

Acting as lead underwriters in the IPO are Victoria Sekuritas and Kapita Sekurindo.

PT Bank Kesawan was established in 1913 in Medan by the name of The Chinese Trading Limited. The bank currently operates one head office in Jakarta and 21 branch offices.
(np-ns/da-tr)