HONG KONG, Sept 30 (Reuters) – HSBC Holdings Plc. An initial public offering (IPO) for an Indonesian business has started to be presented to investors, two sources with direct knowledge of the matter said.
HSBC Indonesia executives have been discussing the details of the IPO since last week with a group of fund managers in Singapore ahead of an official roadshow, he said. The schedule of the roadshow is yet to be announced.
The amount of the deal has not yet been announced, and it depends on market conditions, said the sources, who did not want to be named because the information related to the proposed IPO has not yet been made public.
HSBC declined to comment on the deal.
In the year In 2009, HSBC acquired Indonesian bank Econom Raharja, which has a nationwide presence. This is the year In 2017, it merged with HSBC Indonesia, the British bank’s existing local arm.
The IPO is primarily aimed at meeting the regulatory commitment of HSBC through the merger and acquisition of Economy Raharja with the local HSBC business.
The Indonesian IPO, if it materializes, comes on the back of London-headquartered HSBC continuing to expand in Asia, which accounts for the bulk of its revenue and profits.
The IPO comes as HSBC faces pressure from China’s Ping An Insurance Group ( 601318.SS ), its No. 1 shareholder, to explore options including listing its Asian business to boost shareholder returns.
HSBC will decide whether to launch an IPO in the next few weeks before the end of 2022, one of the sources said.
New share sales fell 65.8% in the first nine months of 2022, according to Refinitiv data, from $306.8 billion to $104.85 billion in 2021, as geopolitical concerns and higher inflation and interest rates dampened investor appetite.
IPO proceeds in Southeast Asia totaled $6.5 billion in the past nine months, down from $10 billion in the same period last year, the data showed.
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Reporting by Kane Wu and Scott Murdoch in Hong Kong; Editing by Sumeet Chatterjee and Jane Merriman
Our Standards: The Thomson Reuters Trust Principles.
