IPO route turns hot as nine Indonesian firms line up to list on IDX in Q2

Indonesia Stock Exchange | Photo: Reuters

Companies in Indonesia appear to be tapping the stock market route to raise capital.

The Indonesian Stock Exchange (IDX) has said that nine companies will hold initial public offerings (IPO) in the second quarter this year. The companies, currently in the process of getting an approval from the Financial Services Authority (OJK), are scheduled to list their shares in the next one or two months.

In 2015, Indonesia saw only 19 companies raising $1 billion via the capital market route as opposed to the targeted 35 listings.

“Many companies have conducted public hearings here, almost every day. This shows that interest from hopeful firms to list on the IDX are increasing,” said IDX Chairman Tito Sulistio in Jakarta, adding that the nine companies will be using the December financial report for their IPOs.

Sulistio said, the increasing appetite from local companies to list must also be supported with foreign capital inflow into the country. In the last five years, the IDX has been dominated by foreign capital – taking up about 60 per cent of the total transaction.

Indonesia has a Rp1,000 trillion worth of reserves with market capitalisation valued at Rp5,000 trillion. But, on average, only Rp6 – 7 trillion are being traded in the stock market every day.

“We are aiming to pull in a lot more hot money from outside the country,” Tito said.

According to data, there are at least 524 companies listed on the IDX up until April 21, 2016. About 432 of the publicly listed firms are based in Jakarta, 27 are based in East Java and 26 companies in Banten.

The Jakarta Composite Index (JCI) slid by 0.74 per cent on Monday to close at 4,802.7 points, in line with the fall in the regional markets. Since early this year, the JCI has climbed 4.57 per cent while in April alone, the index dropped 0.5 per cent.

On April 7, the JCI had set a new record high of 5,523.29 points. The index’ work performance remains one of the highest in the ASEAN region.

Also Read:

Indonesia: IDX joins IPC market network; E-commerce sites to be accredited

Indonesia Stock Exchange seeks five-fold growth; daily transaction to reach $1.88b by 2020

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.