Bapepam to issue new regulation on IPO

The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) will issue a new regulation on initial public offering (IPO) that will include, among others, new time frame for IPO realization.

Bapepam chairman Fuad Rahmany said the new time frame basically would allow companies three to six months time to decide on the day for the IPO after receiving a permit from the agency. Previously the agency only allows one day after the permit issuance.

“The draft of the new regulation is ready. We are currently summoning all important stakeholders to contribute to the discussion,” Fuad said as quoted by tempointeraktif.com.

Fuad added that the new time frame for the IPO was necessary so that companies would not be bound by the agency’s work schedule.

“With the new regulation, companies can make its decision based on the market condition. The time frame should be three to six months at the most. It is not final yet,” he said.

However, he said, should the company made a public announcement of the IPO, it could not back track from the plan or to receive a sanction. (and)