Who wants an Indonesian investment bank?

Issuer: PT Makindo
Amount: 40% of share capital
Type of deal: IPO
Lead manager: BNP Prime East, Bahana Securities

In 1997's awards for the worst-managed sale of an investment bank, Barclays can find few peers. But one candidate may be Indonesia's largest investment bank, PT Makindo, which surprised many observers by launching its own initial public offer during conditions so bad that even its global coordinator Deutsche Morgan Grenfell (DMG) pulled out.

The Rp367 billion deal representing about 40% of Makindo's share capital, went ahead in December despite an unsuccessful roadshow, a plunge in the Indonesian stock market to a four-year low and a dive in the nation's currency - which lost 22% of its value against the dollar in a single week. Just before the roadshow the deal would have raised the equivalent of $110 million but by the time of allocation this amount had been reduced to nearer...