JAKARTA. PT Bank Sumut, a regional bank owned by the Government of North Sumatra, plans to distribute cash dividend of IDR 560.57 billion from its net profit gained in 2022.

The total dividend will be equal to 80% of the total net profit secured by Bank Sumut in 2022. The cash dividend distribution plan had gained approval from the Annual General Shareholders Meeting on Monday (6/3).

Other than cash dividend distribution, the investors of Bank Sumut also discussed and agreed upon the allocation of the remaining net proceeds as the general reserves. For the record, Bank Sumut recorded net profit of IDR 700.72 billion in 2022.

Accrording to IDNFinancials record, Bank Sumut had completed the book building for 2.93 billion shares issued through its initial public offering (IPO) on January 5-18, 2023. The number of shares issued in the IPO is equal to 23% of Bank Sumut’s total shares post IPO.

However, at the end of January 2023, Indonesia Stock Exchange (IDX) announced that Bank Sumut had cancelled the IPO plan without any further specific reason.

Bank Sumut had initially set the IPO price during the book building from IDR 350 to IDR 510 per share. Assuming that Bank Sumut proceeded with the IPO with the offering price of IDR 510 per share, the company potentially gains IDR 1.5 trillion of fresh funds at the end of the IPO. (KR/ZH)