The IPO market in Indonesia is abuzz with action. Two companies are looking to make a market debut in July with an aim to reap over $8 million in total proceeds.
Real estate developer and operator Bima Sakti Pertiwi is expecting to raise up to Rp 63 billion ($4.4 million) in lieu of a 20 per cent stake, the company said in a statement. On the other hand, Yogyakarta-based Eastparc Hotel is planning to raise as much as Rp 54.88 billion ($3.8 million) from its IPO, according to a filing at the Indonesian Central Securities Depository (KSEI).
Bima Sakti Pertiwi is the management operator of a shopping mall in Pekanbaru, Riau. The company has appointed brokerage firm Danatama Makmur as its underwriter for the IPO and has set an issue price at Rp 100 – Rp 200 ($0.014 ) apiece.
It is understood that Bima Sakti Pertiwi plans to use the majority part of the capital – as much as 88 per cent – to renovate its buildings, while it also plans to use the remaining amount to acquire land in Pekanbaru.
As for Eastparc Hotel, the proceeds from the IPO will help build a four-star hotel, with an estimated cost of around Rp 115 billion.
The hotel operator has offered 412.64 million shares or 10 percent from its enlarged capital. The company set its share price at Rp 133 ($0.094) apiece.
A Jakarta-based Brokerage company UOB Kay Hian Sekuritas is acting as the underwriter for the IPO and the company will list its shares at IDX on July 5.
After witnessing a lull in the first part of the year, Indonesia’s capital market is all set to gather momentum in months ahead as corporates who were earlier adopting a ‘wait and watch’ policy are gearing up to make their offerings soon.
Today, logistic operator Krida Nusantara also made a debut on the public market and saw its shares soar. The company, which traded under the ticker name KJEN, closed 49.5 per cent higher at Rp 302 ($0.027) per share during the trading debut on Tuesday. It sold 150 million shares equivalent to 30 percent of its enlarged capital, offering a price of Rp 202 ($0.014) apiece.
Other companies who are currently in the pipeline to launch their IPO this year include real estate and property firm Menteng Heritage Realty, cable TV network MNC Vision Networks, and telco service provider Jasnita Telekomindo.