Bank Mandiri’s Islamic unit considering IPO

Bank Mandiri is planning an initial public offering next year for its Islamic unit, Bank Syariah Mandiri, according to its commercial director, Sunarso.

“The preparations for the share sale, still have to be completed first but I don’t think it will take too long,” he said.

“We want the IPO to help strengthen the capital [of Bank Syariah Mandiri] .”

He did not provide any details regarding the size of the IPO or the total estimated funds to be raised.

Sunarso said that BSM still needs a further injection of capital to expand its reach.

Raising funds from the public, he added, is one of the best options for Bank Syariah Mandiri to boost its capital.

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