HSBC Mulls Listing of Indonesia Unit

HSBC Mulls Listing of Indonesia Unit

HSBC is reportedly considering listing its Indonesia unit on the local exchange, where the market is outperforming the broader region.

HSBC is in the advanced stage of a share sale in Jakarta for its Indonesia business, according to a «Bloomberg» report citing unnamed sources. 

The British lender has yet to file a formal IPO application but the Indonesian regulator is aware of the intention to list which would make good on its pledge in 2015 to eventually have HSBC re-listed after the full integration of local bank PT Bank Ekonomi Raharja.

In 2008, HSBC bought 88.9 percent of PT Bank Ekonomi Raharja for $607.5 million, doubling its branch network across the country.  

Regional Leader

In 2022, the Jakarta Composite Index has been the best-performing major benchmark in Asia with a nearly 5 percent rise year-to-date.

First-time share sales in Indonesia reached $1.2 billion thus far this year, up from a mere $161 million raised in the same period in 2021, according to Bloomberg data.

In 2021, HSBC’s Indonesia reported a pre-tax profit of $129 million, according to its results, in a business with more than 3,000 employees.