Open AccessInorganic Strategy Priority and The Company Valuation Analysis of Pt Bank Bni Syariah to Become Buku III Bank
Author(s) -
Dio Ardana Pramandika,
Uke Marius Siahaan
Publication year - 2020
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2020.5.5.575
Subject(s) - initial public offering , valuation (finance) , business , equity (law) , equity capital , finance , public offering , cost of capital , capital (architecture) , analytic hierarchy process , accounting , economics , profit (economics) , archaeology , political science , microeconomics , law , history , mathematical economics
PT Bank BNI Syariah with a core capital of 4.4 trillion rupiahs, has a roadmap design to move up to BUKU III bank in 2020. One of the requirements to become a BUKU III bank is to have a core capital of 5 trillion rupiahs. With the current existing core capital, the company needs additional funding to meet those requirements. Inorganic Strategy is considered as the best option to add the company’s core capital. Using the Analytical Hierarchy Process (AHP) method, the author calculates the best possible Inorganic Strategy alternatives for the company, resulting in Initial Public Offering as the best alternatives. Thus, the company valuation is calculated to determine the fair value of the company for IPO. The company equity posture after IPO will be PT. Bank Negara Indonesia, Tbk. (79,95%), PT. BNI Life (0,05%) and public (20,00%). The company offered the share price at Rp 800 per share. Total equity gained after the public offering will be Rp 2,001 trillion, thus the new core capital of the company is Rp 6,4 trillion.