Danamon eyes rights, despite investor doubts

27 Jul 2011

Indonesia’s Bank Danamon is looking to raise around Rph5tr ($586m) from a rights issue, but some market participants are sceptical that the deal will capture the attention of old or new shareholders.

The commercial bank has picked Citigroup, Deutsche Bank and Danareska Securities to lead the deal, and will sell around 1.2bn rights shares at a ratio of 144-to-1000 existing shares. But some investors are far from positive about the bank’s growth prospects, arguing that the lender has been far ...

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