KOMPAS.com - PT Bank Mandiri may set the price for its 3.9 billion share rights auction between IDR4,900 and IDR4,950 a share, a banker who is involved with the deal tells Dow Jones Newswires.
He says that the bank could raise up to IDR19.30 trillion ($2.14 billion). The Indonesian government, which owns a 66.7% of Bank Mandiri, will sell 1.558 billion rights shares.
“The price (of the rights shares) is expected to be announced at 0700 GMT,“ he says.
Analysts say that the rights share price looks attractive as it is discounted by up to 13% to Bank Mandiri's closing price of IDR5,600 Friday. The rights shares price is also discounted by up to 11% to its theoretical ex-right price, at between IDR5,400 and IDR5,500 a share, the banker says.