At least seven companies will list their shares on the Indonesia Stock Exchange and the number is likely to go up in the second half of 2016, according to the country’s market regulator Financial Service Agency, commonly referred as OJK.
In addition to this, there are seven corporate bond issues that will hit the market soon, indicating an increased appetite for such offerings.
In 2015, the southeast Asian economy saw 19 companies tap the stock market to raise $1 billion, much lower than the targeted 35 listings.
The seven companies that have lined up list on the local bourse are Graha Antasena Propertindo, Cikarang Listrindo, Sillo Maritime Perdana, Duta Intidaya, Protech Mitra Perkasa, Capital Financial Indonesia and Megapower Makmur.
“We can’t mention the value of IPOs as companies have still not set the price,” OJK deputy commissioner Noor Rachman told reporters on Tuesday.
Seven new bonds issues will be offered by Pelindo I (Rp 1 trillion), PP Property (PPRO) (Rp800 billion), Angkasa Pura II (Rp2 trillion), Intiland Development (DILD) (Rp 800 billion) and Indonesia Infrastructure Finance (Rp2 trillion), he added.
Other companies that plan to issue Islamic bonds or sukuks, include Tiga Pilar Sejahtera (AISA) Rp1.5 trillion and regional development banks in South Sulawesi and West Sulawesi (amounting to a total of Rp80 billion).
Besides these, 11 more companies have registered with the OJK for their proposed bond issues.
These companies include Surya Artha Nusantara Finance (Rp 2 trillion), Waskita Karya for Rp 2 trillion, Bank Panin for Rp 2.2 trillion, Bumi Serpong Damai for Rp 1.5 trillion, Medco Energy for Rp1.5 trillion, Maybank Indonesia for Rp 1.5 trillion, Tower Bersama Infrastructure for Rp 1 trillion, Bank Tabungan Pensiun Nasional for Rp1 trillion, Wahana Oto Multiartha Tbk for Rp 800 billon, BPD DKI Rp 500 billion and PT Batavia Prosperindo Finance Tbk (BPFI) for Rp 200 billion.
According to Noor Rachman, the bond issues have increased significantly thanks to the steady demand for such products as also the confidence of corporates on the Indonesia market.
Apart from IPOs and bonds, corporates are also proposing to raise capital through the rights issue. Companies who have registered for rights issues includ Rimo International, Astra Agro Lestari, Bank Windu Kentjana, Bentoel International Investama, ACSET Indonusa Grahatama, Graha Layar Prima, MNC Investama, Alam Raya Unggul, Bank Ina Perdana.
“The rights issue has indicative values around Rp29 trillion,” he added.