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.
