HSBC plots IPO of Indonesian business

Lender HSBC was said to have been working towards an initial public offering of its Indonesian business as part of an effort to take advantage of investor demand in the heavily-populated nation.

According to Bloomberg, HSBC's plans for a share sale in Jakarta were at an advanced stage and, while the bank was yet to file a formal IPO application, local regulators were allegedly already aware of its intention.

HSBC's move will fulfill a vow made by Indonesia's Financial Services Authority to eventually allow it to relist its Indonesian business after it fully integrate the lender known as PT Bank Ekonomi Raharja back in 2015. The watchdog stated at the time of the integration that the process would likely take multiple years to come to fruition.

As of 1020 BST, HSBC shares were down 0.82% at 517.0p.

Reporting by Iain Gilbert at Sharecast.com