British-based multinational banking giant HSBC is considering listing its Indonesian unit on the Jakarta Stock Exchange, Bloomberg News reported, citing unnamed sources. The British bank, Europe’s second-biggest by assets, is in an advanced stage of a stake sale in its local subsidiary, but has yet to file a formal application for an initial public offering (IPO) with Indonesia’s financial markets regulator, the report said. A separate report from the International Financial Review put the listing at $200 million. Relisting after local acquisition HSBC has been on a growth trajectory in Indonesia since 2009…
UK-based multinational banking giant HSBC is considering listing its Indonesian subsidiary on the Jakarta Stock Exchange, Bloomberg News Reported with reference to unnamed sources.
The British bank, Europe’s second-biggest by assets, is in an advanced stage of a stake sale in its local subsidiary, but has yet to file a formal application for an initial public offering (IPO) with Indonesia’s financial markets regulator, the report said. .
The listing will be worth $200 million, according to another report International Financing Review disclose.
Re-listing after local acquisition
HSBC has been on a growth trajectory in Indonesia since 2009, when it acquired an 88.9% stake in then-listed local bank PT Bank Ekonomi Raharja for $607.5 million, expanding its branch network across the country under the “Bank Ekonomi” brand doubled.
In October 2016, Bank Ekonomi changed its name to PT Bank HSBC Indonesia, and HSBC committed to eventually relisting the entity.
According to its official results, in 2021, HSBC Indonesia reported a pre-tax profit of US$129 million, and the business employs more than 3,000 local staff.
a long history
HSBC Group has a long and diverse history in Indonesia. It opened its first branch in Jakarta (then known as Batavia) in 1884 under the name The Hongkong and Shanghai Banking Corporation Limited Indonesia Branch.
Later expanded to Surabaya, mainly engaged in trade finance with Chinese clients. It was forced to close in the 1940s and 1960s, only reopening in 1968 with a new banking license, and gradually branched out into commercial and global banking, treasury capital markets, and wealth and personal banking for corporate and institutional clients.
Today, HSBC Indonesia is one of the largest foreign banks in the country.
