Bank Danamon: PPA's view

Rarely has a straight equity placement been shrouded in such mystery as the 10% sale of Bank Danamon on November 4. The deal was marketed by UBS and Danareksa as a 490 million share institutional equity deal with an indicative price range at a 3% to 6% discount to the closing price of Rp3,575. The leads went on to build a book with top tier investors and had it covered at a 2.8% discount by market close. At this point, however, the market heard that one investor, Temasek, had purch…