F

our more companies will float their shares on the Indonesia Stock Exchange (IDX) within the next two weeks to take advantage of the bullish sentiment on the local market.

The newcomers will include Borneo Lumbung Energi and Metal, Wintermar Offshore Marine, Bumi Resources’ non-coal unit Bumi Resources Minerals (BRM) and Midi Utama. They will all list their shares on the nation’s stock exchange from Nov. 26 to Dec. 2.

Borneo’s corporate secretary Geroad Jusuf said Monday that the miner had raised Rp 5.17 million through the initial public offering (IPO), or the nation’s second biggest IPO this year after Indofood Sukses Makmur’s instant noodle unit Indofood CBP, which gathered Rp 6.29 trillion in August.

“We decided to raise our shares offering due to high demands seen throughout the book-building period,” Geroad told The Jakarta Post in a telephone interview.

Borneo raised its IPO size to 25 percent from 20 percent previously amid the solid demand. The 25 percent stake that will be floated on the stock exchange this Friday (Nov. 26) is equal to 4.42 billion new shares.

As reported earlier, Borneo has agreed to sell its shares at Rp 1,170 apiece, or in the middle of its previous price range of Rp 980 and Rp 1,280. About 85 percent of the share on offer will go to foreign investors and 15 percent to domestic investors, Geroad has previously said.

Meanwhile, BRM, which will list its initial shares on the stock exchange on Dec. 2, downsized its initial shares offer to 3.3 billion shares, from the previous 4.32 billion. With a set price range of Rp 635 apiece, BRM will raise Rp 2.1 trillion from the Nov. 24-26 shares offer.

Wintermar and Midi Utama, which runs Alfa Midi retailer chain, will follow Borneo and BRM’s steps to float their shares on the IDX on Nov. 29 and Nov. 30. The two companies expect to raise Rp 342 billion and Rp 118.9 billion respectively from their IPOs.

Wintermar completed an offering for 900 million new shares on Monday, while Midi Utama is currently still offering its 432.35 million new shares until Nov. 24.

Seventeen companies have launched IPOs throughout the year, including state-run Krakatau Steel, coal miners Harum Energy and Berau Coal Energy, as well as rural lender Bank Jabar Banten. IPO proceeds have reached Rp 21.64 trillion so far this year, excluding the four companies, which will add about Rp 7.7 trillion to the proceeds.

Capital market regulator Bapepam-LK is currently processing other IPO requests from three companies, namely Martina Berto (the manufacturing unit of cosmetic giant Martha Tilaar), Sinar Mas Group’s Bank Sinarmas and Aditech Cakrawiyasa.

The Indonesian stock market is among the best performers in Asia, with its main Jakarta Composite Index rising by nearly 45 percent so far this year. (est)