HSBC considers $200-million IPO of local Indonesian unit

UK-based multinational banking giant HSBC is considering listing its Indonesia unit on the stock exchange in Jakarta, Bloomberg News reported with reference to unnamed sources.

The British lender, Europe’s second largest bank per assets, is in advanced stages of a share sale of its local subsidiary, but has yet to file a formal application for an initial public offering (IPO) with the Indonesian financial market regulator, the report said.

The listing would be valued at $200 million, a separate report by International Financing Review revealed.

Re-listing after local acquisition

HSBC has been on a growth trajectory in Indonesia since 2009 when it acquired 88.9 per cent of then-listed local bank PT Bank Ekonomi Raharja for $607.5 million, doubling its branch network across the country under the brand “Bank Ekonomi.”

In October 2016, Bank Ekonomi was rebranded PT Bank HSBC Indonesia and HSBC made the pledge to eventually re-list the entity.

In 2021, HSBC Indonesia reported a pre-tax profit of $129 million, according to its official results, in a business that employs more than 3,000 local staff.

Long history

HSBC Group has a long and diverse history in Indonesia. It opened its first branch in the country in Jakarta – then known as Batavia – in 1884 under the name of The Hongkong and Shanghai Banking Corporation Limited, Indonesia Branch.

It subsequently expanded to Surabaya and engaged mainly in trade finance with Chinese customers. In the 1940s and 1960s it was forced to close and only reopened in 1968 with a new banking license and ventured gradually into commercial and global banking for corporate and institutional clients, into treasury capital markets, as well as wealth and personal banking.

Today, HSBC Indonesia is among the largest foreign banks in the country.



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UK-based multinational banking giant HSBC is considering listing its Indonesia unit on the stock exchange in Jakarta, Bloomberg News reported with reference to unnamed sources. The British lender, Europe’s second largest bank per assets, is in advanced stages of a share sale of its local subsidiary, but has yet to file a formal application for an initial public offering (IPO) with the Indonesian financial market regulator, the report said. The listing would be valued at $200 million, a separate report by International Financing Review revealed. Re-listing after local acquisition HSBC has been on a growth trajectory in Indonesia since 2009...

UK-based multinational banking giant HSBC is considering listing its Indonesia unit on the stock exchange in Jakarta, Bloomberg News reported with reference to unnamed sources.

The British lender, Europe’s second largest bank per assets, is in advanced stages of a share sale of its local subsidiary, but has yet to file a formal application for an initial public offering (IPO) with the Indonesian financial market regulator, the report said.

The listing would be valued at $200 million, a separate report by International Financing Review revealed.

Re-listing after local acquisition

HSBC has been on a growth trajectory in Indonesia since 2009 when it acquired 88.9 per cent of then-listed local bank PT Bank Ekonomi Raharja for $607.5 million, doubling its branch network across the country under the brand “Bank Ekonomi.”

In October 2016, Bank Ekonomi was rebranded PT Bank HSBC Indonesia and HSBC made the pledge to eventually re-list the entity.

In 2021, HSBC Indonesia reported a pre-tax profit of $129 million, according to its official results, in a business that employs more than 3,000 local staff.

Long history

HSBC Group has a long and diverse history in Indonesia. It opened its first branch in the country in Jakarta – then known as Batavia – in 1884 under the name of The Hongkong and Shanghai Banking Corporation Limited, Indonesia Branch.

It subsequently expanded to Surabaya and engaged mainly in trade finance with Chinese customers. In the 1940s and 1960s it was forced to close and only reopened in 1968 with a new banking license and ventured gradually into commercial and global banking for corporate and institutional clients, into treasury capital markets, as well as wealth and personal banking.

Today, HSBC Indonesia is among the largest foreign banks in the country.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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