BRI Syariah Floats 2.6bn Shares for Rp510/unit

1 min readUpdated May 11, 2018May 11, 201811:57 PM

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Bank BRI Syariah has been listed as an issuer at the Indonesia Stock Exchange today, May 9. With the code BRIS, BRI released more than 2.6 billion new shares or 27 percent of its paid up capital.

BRIS IPO price was set at Rp510 per share. The SOE Ministry’s deputy for restructuring and business development said BRI Syariah is the first sharia issuer to be listed at the IDX.

“With the price, BRI Syariah managed to be oversubscribed twice,” president director Moch. Hadi Santoso said here on Wednesday.

BRI Syariah is the subsidiary of Bank Rakyat Indonesia established in November 2008. As of March 2018, BRI Syariah’s assets amounted to Rp94.7 trillion.

Hadi said the IPO proceeds will strengthen the company’s capex and help BRI Syariah included in the BUKU III banks category.

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What this means

BRI Syariah's successful oversubscribed IPO at Rp510 per share is a decisive move, positioning it for accelerated growth and entry into the BUKU III category. Unlike regional retail expansions such as Panpuri's 16-store plan or Miniso's new concept store, this capital injection directly pressures conventional and nascent sharia banks to demonstrate equally compelling growth strategies or risk falling behind. The move uses the burgeoning Islamic finance market, a segment where few regional players have achieved this scale of public listing. The primary risk lies in effectively deploying the Rp94.7 trillion to justify the oversubscription and maintain investor confidence. Watch for its next quarterly asset growth figures to assess initial impact.

Minjun Park · Retail News Asia newsroom

Questions & Answers

What percentage of BRI Syariah's total capital do the newly issued shares represent?

The newly issued shares constitute 27 percent of BRI Syariah's paid-up capital. Over 2.6 billion new shares were released as part of the initial public offering at the Indonesia Stock Exchange today.

What is the primary purpose of BRI Syariah's IPO proceeds?

The proceeds from the IPO will be used to strengthen the company's capital expenditure. This financial injection is also expected to help BRI Syariah qualify for inclusion in the BUKU III banks category.

Is BRI Syariah the first of its kind to be listed on the Indonesia Stock Exchange?

Yes, BRI Syariah is the first sharia issuer to be listed on the Indonesia Stock Exchange. This is a significant development, according to the SOE Ministry’s deputy for restructuring and business development.

What was the initial offering price for BRI Syariah shares?

The IPO price for BRI Syariah shares was set at Rp510 per share. This pricing resulted in the offering being oversubscribed twice, according to president director Moch. Hadi Santoso.

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