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View all search resultsOnline IPO subscription ready by 2015
The Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) say that starting in the first half of 2015, investors will be able to purchase shares offered in an initial public offering (IPO) online, as the regulator and the stock market are mulling a plan to allow better access to the countryâs capital market
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T
he Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) say that starting in the first half of 2015, investors will be able to purchase shares offered in an initial public offering (IPO) online, as the regulator and the stock market are mulling a plan to allow better access to the country's capital market.
OJK commissioner for capital market supervision Nurhaida said on Friday that an online purchasing plan was being prepared to distribute IPO shares sales more evenly to the clients of brokers registered in the bourse as well as to the public.
Nurhaida said that by introducing such a system, everyone would have the opportunity to partake in the IPO shares subscription, which is limited to brokers involved in the offering.
'Currently, only underwriters and syndication formed by the underwriters, as well as some brokers, can carry out transactions of shares in the initial market. With the online system, we expect every client with all brokers registered in the bourse to have access to subscribe to shares through their respective brokers as go-betweens,' she explained.
'We're looking into details needed to prepare the system, such as infrastructure or regulations, if needed. We hope that by the first half of next year the online system can be implemented.'
She said that the authority and the bourse might take quite some time to prepare such a breakthrough, given that better infrastructure would be required to implement it.
'We have to take extra care for the security of the system,' she added.
IDX information technology and risk management director Adikin Basirun said if the system could be successfully implemented, the country's stock market would be the first in Southeast Asia to have online IPO transactions.
He added that by applying the system, investors from other parts of the world would also gain improved access to Indonesia's primary shares offering.
- Investors will be able to buy shares offered in IPOs via online channel
- Everyone to have opportunity to join IPO shares subscription
- New system is expected to go live in the first half of next year
Further, Adikin said that the 'primary support system' was designed to help brokers registered in the bourse to process faster book building and see investors' interest in the IPO to determine share prices.
The online system is also expected to provide transparency so there will be fairer pricing between clients of the IPO underwriters and other brokers, as well as simplifying and accelerating expediting allotments.
The system, Adikin said, would especially benefit brokers that have applied the online purchasing system as they would only have to adjust theirs to the new system to be introduced.
Adikin said there were 109 active brokers in the bourse and 70 of them had operated the online system.
The OJK and IDX have introduced and planned several regulations to entice more companies and investors to enter the bourse ahead of the ASEAN Economic Community (AEC) next year.
The move includes a regulation, introduced earlier this month, to allow miners that have yet to start production to float their shares to the public. The OJK and IDX have also deliberated on the use of an electronic registration system for companies hoping to go public, which will enable firms to apply for an IPO electronically, which is expected to cut costs and simplify procedures.
The bourse initially targeted to see 30 companies listed this year, but due to an unfavorable investment atmosphere during election year, only 19 firms are listed and the bourse has reduced the target to 25.
OJK commissioner for capital market supervision Nurhaida said on Friday that an online purchasing plan was being prepared to distribute IPO shares sales more evenly to the clients of brokers registered in the bourse as well as to the public.
Nurhaida said that by introducing such a system, everyone would have the opportunity to partake in the IPO shares subscription, which is limited to brokers involved in the offering.
'Currently, only underwriters and syndication formed by the underwriters, as well as some brokers, can carry out transactions of shares in the initial market. With the online system, we expect every client with all brokers registered in the bourse to have access to subscribe to shares through their respective brokers as go-betweens,' she explained.
'We're looking into details needed to prepare the system, such as infrastructure or regulations, if needed. We hope that by the first half of next year the online system can be implemented.'
She said that the authority and the bourse might take quite some time to prepare such a breakthrough, given that better infrastructure would be required to implement it.
'We have to take extra care for the security of the system,' she added.
IDX information technology and risk management director Adikin Basirun said if the system could be successfully implemented, the country's stock market would be the first in Southeast Asia to have online IPO transactions.
He added that by applying the system, investors from other parts of the world would also gain improved access to Indonesia's primary shares offering.
Further, Adikin said that the 'primary support system' was designed to help brokers registered in the bourse to process faster book building and see investors' interest in the IPO to determine share prices.
The online system is also expected to provide transparency so there will be fairer pricing between clients of the IPO underwriters and other brokers, as well as simplifying and accelerating expediting allotments.
The system, Adikin said, would especially benefit brokers that have applied the online purchasing system as they would only have to adjust theirs to the new system to be introduced.
Adikin said there were 109 active brokers in the bourse and 70 of them had operated the online system.
The OJK and IDX have introduced and planned several regulations to entice more companies and investors to enter the bourse ahead of the ASEAN Economic Community (AEC) next year.
The move includes a regulation, introduced earlier this month, to allow miners that have yet to start production to float their shares to the public. The OJK and IDX have also deliberated on the use of an electronic registration system for companies hoping to go public, which will enable firms to apply for an IPO electronically, which is expected to cut costs and simplify procedures.
The bourse initially targeted to see 30 companies listed this year, but due to an unfavorable investment atmosphere during election year, only 19 firms are listed and the bourse has reduced the target to 25.
