HSBC is in the early stages of planning an IPO of its banking business in Indonesia, sources say

Plans for a share sale in Jakarta are at an advanced stage, said people familiar with the plan

The plan would meet a promise by the regulator to eventually have HSBC re-list the Indonesian business after it moved in 2015 to fully integrate PT Bank Ekonomi Raharja

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HSBC’s headquarter in Jakarta on April 11, 2008. Photo: Reuter

Published: 8:00pm, 26 May 2022

HSBC Holdings has been examining an initial public offering (IPO) of its Indonesian business to tap buoyant investor demand in the world’s fourth-most populous country.

Plans for a share sale in Jakarta are at an advanced stage, said people familiar with the plan, asking not to be named discussing an internal matter. It has yet to file a formal IPO application but the local regulator is aware of its intention, they said. A spokesman for HSBC declined to comment. A spokesperson at Indonesia’s Financial Services Authority said the regulator doesn’t comment on corporate actions.

The plan would meet a promise by the regulator to eventually have HSBC re-list the Indonesian business after it moved in 2015 to fully integrate the lender once known as PT Bank Ekonomi Raharja. Indonesia’s watchdog said at the time that this process would likely take several years.

HSBC is in the midst of a pivot to Asia, shifting billions of dollars in capital and making fresh investments as it sells off and scales back unprofitable businesses in other regions. The bank is also fending off a push by its largest shareholder -- China’s Ping An Insurance Group -- to spin off the Asian operations in a bid to improve returns.

Indonesia’s economy has been gathering pace after emerging relatively unscathed from its latest virus wave, with the government predicting economic growth of 4.8 per cent to 5.5 per cent this year.

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