Indonesian Stock Exchange kicks off new year as SE Asia’s most active bourse

The Stock Exchange of Indonesia | Photo: Bloomberg

The Indonesian stock exchange has kicked off the new decade as Southeast Asia’s busiest bourse for initial public offerings.

The nation has seen more listings than any other in the region, accounting for six of the eight IPOs this month, according to data compiled by Bloomberg. These companies have collectively raised $57.4 million.

Companies that listed in Indonesia last year had exceptional returns, with 10 out of 55 of them surging more than 500% since their IPO, the data show. Those that went public in January had risen by an average 79% through Friday, weighted by deal size, compared with a drop in the national benchmark gauge. Agricultural-services provider PT Cisadane Sawit Raya has gained the most, up 220%.

Here are the newly listed companies on the Indonesian stock exchange this year:

Company Name IPO Size Offer to Date Price Move
Perintis Triniti Properti $15.6m 48%
Ashmore Asset Management Indonesia $15.1m 44%
Bank Amar Indonesia $15m 159%
Royalindo Investa Wijaya $6.8m 79%
Cisadane Sawit Raya $4.0m 220%
Tourindo Guide Indonesia $0.9m 29%

In an effort to boost listings, the government said last year it will lower the corporate tax rate for companies conducting IPOs to 17% in the first five years, lower than that of Southeast Asian neighbors such as Thailand and Malaysia. This year, only tiny firms have gone public in Indonesia, with the average offering size sliding over the past decade.

The shares on offer in such small IPOs are usually distributed to a group of cornerstone investors, meaning the shares may have low liquidity upon listing. That can make the stocks prone to huge price jumps, or, conversely, gut-wrenching price falls.

Still, Indonesia is gearing up for several larger deals this year, including the listing of sanitary product maker PT Softex Indonesia for as much as $500 million, and an IPO by the country’s biggest private carrier, Lion Air, which could raise as much as $1 billion, people familiar with the matter said last year.

UPCOMING LISTINGS:

  • Central Retail Corp.
    • Thailand stock exchange
    • Size up to $2.6b
    • Books close Feb. 3, listing Feb. 20
    • Bualang Securities, Phatra Securities, Credit Suisse, Morgan Stanley, UBS
  • Shenzhen Leoking Environmental Group Co.
    • Hong Kong exchange
    • Pre-marketing started Dec. 18
    • CLSA sole sponsor
  • Mr D.I.Y Group Sdn.
    • Bursa Malaysia
    • Size up to $500m
    • Pricing date TBD
    • CIMB, Maybank
  • Zhongguancun Science-Tech Leasing Co.
    • Hong Kong exchange
    • Size $65m
    • Listing Jan. 21
    • Bocom International, GF Securities, Guotai Junan, Silk Road International Capital
  • Willfar Information Technology Co.
    • Shanghai exchange
    • Size $103m
    • Listing Jan. 21
    • CICC

Bloomberg

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.