Publication Date : 13-05-2013
Hoping for financial gains from the bourse, more companies are set to float their stocks on the Indonesia Stock Exchange (IDX), hopefully before the end of the first half of the year, according to an official.
“All of the companies that have given a presentation before the bourse will use their financial statement issued in December, except Kota Deltamas which will use its March financial statement,” IDX listing director Hoesen said.
Each company has a six month period to conclude its initial public offering (IPO) process. The six month period starts from the issuance of the company’s financial report.
If within six months the IPO process has not been completed, the company needs to use a new financial report.
There are a number of firms that have shown an interest in entering the bourse to raise funds to finance expansion. The latest company to make the move was industrial estate developer Kota Deltamas.
The company is planning to offload around 20-25 per cent of its enlarged capital, according to a source. As much as US$200 million to $300 million is expected to be raised from the offering, Reuters has reported.
Kota Deltamas is among other companies seeking a huge amount of money from the capital market.
So far, eight companies that recently listed their shares on the bourse have collected 2.53 trillion rupiah ($253 million) in total funds raised from their IPOs. Last year, funds raised from IPO reached 10 trillion rupiah and this year the number is expected to grow as firms planning to go public have hinted at their expectation for big gains of
the offering.
Most of the companies that entered the bourse this year performed well in debut trading, except plantation firms.
PT Multi Agro Gemilang Plantation, which officially floated on the bourse on January 16 with shares traded under a code MAGP, saw its stock price slump around 12 per cent at the closing of its first day of trading. Shares in MAGP, however, rebounded and closed at 149 rupiah last Friday, already higher than its IPO price of 110 rupiah.
Another newly-listed plantation firm, PT Austindo Nusantara Jaya, enjoyed a similar experience. The company’s share price was slightly lower by around 0.8 per cent at the closing time of its initial trade last Wednesday.
The company’s shares, traded under the code ANJT, were closed at 1,200 rupiah, the level of its IPO price, last Friday.
Concerns over the weakening price of crude palm oil was one reason why plantation stocks experienced pressure during the initial trade, according to PT Samuel Asset Management president director Agus Yanuar.
“However, the IPO is actually about a valuation. Although there is pressure in the plantation sector, we participated in Austindo’s IPO as the company gave a discount. Investors purchasing stock in the IPO are expecting the share price to increase. However, as public investors, we are expecting business growth that is reflected in stock price growth,” Agus said.
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