from O to IPO

from O to IPO

O-Bank (formerly Industrial Bank of Taiwan), is keen to transform itself into “a nimble and digitally-focused boutique lender” as it gears on for an IPO.

The IPO is scheduled for early May and is the first bank listing in Taiwan in 13 years. O-Bank is hoping to raise TWD 225 million ($7.4 million) in new funds.

The bank is a small entity, with five domestic branches and one in Hong Kong, so it seeks to position itself as “an asset-light boutique” that offers higher returns compared to large domestic banks.

According to O-Bank’s president, C.Y. Yang, in the last two years the bank posted an average return on investment (ROE) of 11.6%, while the industry average is 10.4%.

There is also ambition to surpass larger players with a superior digital channels proposition, according to Yang.

For example, it will soon launch a new robo-advisory service targeted at younger, more tech-savvy consumers. Yang says the service will start next month with a three-month pilot programme.

For corporate customers, O-Bank will focus on special purpose loans in the M&A space and will also grow its international presence through its Hong-Kong branch.