Superbank Prepares for IPO Amid Challenges

IPO Details and Financial Projections

Superbank is gearing up for its initial public offering (IPO) on the Indonesia Stock Exchange, targeting funds between Rp2.31 trillion to Rp3.06 trillion. The digital bank plans to sell up to 4.40 billion new shares, representing 13% of its post-IPO paid-up capital. The IPO price is set between Rp525 to Rp695 per share, with a par value of Rp100 per share. The funds raised will be primarily used for working capital to support credit expansion (70%) and the remaining 30% for capital expenditure, including technology development.

Analyst Concerns Regarding Profitability

Analysts from RHB Sekuritas Indonesia have raised concerns about Superbank's current financial performance. Despite reporting a net profit of Rp20 billion in the first half of 2025, the bank's return on equity (ROE) remains low, ranging between 1% to 2%. This has led to questions about the valuation, which is set between 2.3 to 2.8 times price-to-book value (PBV). Andrey Wijaya from RHB Sekuritas noted that the current valuation requires strong investor confidence in the bank's ability to significantly improve profitability in the coming years.

Credit Expansion and Risk Management

Superbank has been aggressively expanding its credit portfolio, with loan growth reaching 30% year-on-year. While this rapid expansion presents growth opportunities, it also raises concerns about credit risk and the bank's ability to maintain asset quality. Effective risk management will be crucial as the bank continues to grow its loan portfolio.

Competitive Landscape in Digital Banking

The digital banking sector in Indonesia is becoming increasingly competitive, with established players such://as PT Bank Jago Tbk. (ARTO), PT Bank Neo Commerce Tbk. (BBYB), PT Allo Bank Indonesia Tbk. (BBHI), and PT Bank Raya Indonesia Tbk. (AGRO) already operating in the market. Superbank will need to differentiate itself and execute its business plan effectively to gain market share.

Conclusion

Superbank's upcoming IPO represents a significant milestone for the digital bank. While the bank faces challenges related to profitability and competition, successful execution of its growth strategy could position it as a strong player in Indonesia's digital banking landscape. The IPO is scheduled for December 17, 2025, with the stock code SUPA.