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17 companies in waiting for IPO: IDX
Two of the companies are categorized as large-scale firms with assets worth more than Rp 250 billion (US$ 15.8 million).
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People walk past a large screen showing the trading numbers on the Indonesia Stock Exchange (IDX) in Jakarta on March 9, 2020. (AFP/Adek Berry)
T
he Indonesia Stock Exchange (IDX) reported on Monday that 17 well-known corporations are currently preparing for an initial public offering (IPO).
IDX company valuation director I Gede Nyoman Yetna said these companies came from the industrial, primary consumer goods, technological, raw goods, non-primary consumer goods and infrastructure sectors.
Two companies are categorized as large-scale firms with assets worth more than Rp 250 billion (US$ 15.8 million), 14 medium-scale firms with assets ranging from Rp 50 billion to Rp 250 billion and one small-scale company with assets worth below Rp 50 billion.
Nyoman said 15 share issues from 13 debt securities and sharia-compliant bonds (EBUS) have been issued, with raised funds amounting to Rp 15.3 trillion since last year.
Similarly, Nyoman said four companies had successfully published rights issues worth Rp 3.08 trillion this year.
"We still have 24 companies in the IDX's rights issue queue," said Nyoman, as quoted by Antara.
Based on these trends, the IDX may hit 1,000 issuers by the end of this year.
Concurrent with these developments is the Deposit Insurance Corporation’s (LPS) plan to push rural banks into going public to increase their overall systemic transparency.
"We support this proposal because the more rural banks that enter the stock market, the more surveillance they have from above. The investors are watching, and there are information disclosure obligations, so that managed rural banks will become more responsible, accountable and transparent," said LPS deposit guarantee programs and bank resolution board of commissioners member Didik Madiyono.
To enter the IDX, rural banks must fulfill several strict requirements set by the Financial Services Authority (OJK), such as improving their financial performance, risk management and governance standards.
