ABSTRACT
An Islamic bank has been established in Indonesia since 1992, but there is only one Islamic bank, Bank Panin Syariah, which has listed its shares on the stock exchange, which happened in 2014. This listing was initiated by a new fully fledged Islamic bank, which was established in 2009. Thus, the objective of this paper is to investigate the supporting factors of an Initial Public Offering (IPO) and its effect on an Islamic bank. This is the first case in Indonesia, and it may offer a few good lessons for others. The qualitative method was used by the author to analyse relevant documents and information regarding the Islamic bank’s IPO, such as prospectuses, news, research reports and stock prices. Topics that covered the supporting factors in an IPO include the utilisation of funds and an event study in share issuance by an Islamic bank in Indonesia. The results may indicate that it is quite difficult to sell shares for a new bank, because the utilisation of funds to boost new branches and the performance of the stock prices are affected by specific issues.
