VALUING AND PRICING FINANCIAL FIRM, CASE OF P.T. BANK MUAMALAT INDONESIA, TBK. PRIOR THEIR IPO IN 2023

• Main Author: Hanggara Tri Poetra, Raden
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/74418
• Institution: Institut Teknologi Bandung

PT Bank Muamalat Indonesia Tbk, is the pioneer in the shariah banking industry. On 2022 The Hajj Financial Management Agency (BPKH) had officially become the main shareholder of Bank Muamalat through a right issue and issuance of sukuk as deposited capital, totaling Rp 3 trillion. This research is focused on determining the intrinsic fair value of the Bank Muamalat/BMI for pre-IPO initial offering price. The research begins with banking industries analysis where author will look for industry average ratios data. This analysis help author to summarize the company internal & external position. Author differentiates the banking industries into two industries, which is Commercial Conventional Bank (BUK) and Islamic commercial Bank & Islamic Business Unit (BUS & UUS) and will use their average multiples as industry multiples ratio. To determining the fair value on this research author uses two methods approach which the relative and absolute valuation methods. On the absolute valuation method author uses the Discounted Cash Flow (DCF) method with Free Cash Flow to Equity (FCFE) approach specifically for banks by looking at the regulatory capital with projection of 5 years. While on relative valuation method author uses three perspective approaches: earnings, book value, and revenue perspective. Multiples ratio representing the perspective is Price to Earnings Ratio (PER), Price to Book Value (PBV), Price to Sales (P/S), and Price to Operating Profits (P/OPPS) approaches. To determine the bank fair value, author differentiate the calculation involving negatives earnings and see the effect of it. The data used in this research comes from historical data during the 2017 to 2022 period, also include the last quarter performance data which is March 2023. From the result of the relative valuation method of the three perspective gives result of intrinsic fair price with range of IDR 103.94 – IDR 168.18. Meanwhile as for absolute valuation method author used discounted cash flow method with free cash flow to equity to financial firm, and it gives result of intrinsic share price with range IDR 152.84 – IDR 197.27. Thus, the average intrinsic fair price using the two valuation methods is IDR 149.54 – IDR 182.97. At the end, the result of this research could be used as a reference in pre-IPO plan of the Bank in 2023.