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ocal debutantes to the bourse have raised Rp 21.65 trillion (US$2.42 billion) in their initial public offerings after heavyweights state-run Krakatau Steel and property company Agung Podomoro floated their shares on the stock exchange last week.

The IPO value exceeded the Indonesian Stock Exchange’s (IDX) target of Rp 20 trillion this year.

Analysts said that this year was a good time for companies to float shares in the country’s stock exchange as demand surged on the back of the influx of foreign funds into the country.

“The companies are taking advantage of the bullish stock market and capital inflows up to now,” Nico Omer Jonckheere, vice president of research and analysis at Valbury Asia Futures, said.

Foreign investors have pumped about Rp 20 trillion up to the end of September this year, helping the benchmark Jakarta Composite Index (JCI) to score record highs since early this year. The JCI reached an all-time high of 3,756 last Wednesday.

The Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) said that as of the end of September this year, it had granted 13 companies permits to float shares on the local exchange. These companies plan to raise Rp 15.23 trillion from their IPOs.

This figure excludes Elang Mahkota Teknologi, which obtained approval from the Bapepam-LK at the end of December 2009, but raised Rp 369 billion through its IPO in January this year.

Three companies have now joined this year’s 14 newcomers to the IDX, including Krakatau Steel and Agung Podomoro, which raised Rp 2.68 trillion and Rp 2.24 trillion, respectively, in their IPOs last week. Meanwhile, telecommunication infrastructure firm Tower Bersama Infrastructure raised Rp 1.12 trillion in its October IPO.

These three companies raised a total of Rp 6.04 trillion in fresh funds through their initial listings, bringing the nation’s total IPO value to Rp 21.64 trillion so far this year.

The number is higher than full-year figures for 2009, when 13 companies raised Rp 3.8 trillion through their IPOs in the midst of a global economic slowdown. In 2008, the IPO value reached Rp 24 trillion.

Four other companies have publicly disclosed plans for an IPO, including mining firm Borneo Lumbung Energi & Metal (looking ot raise Rp 3.2 trillion to Rp 4.2 trillion), Bumi Resources’ non-coal unit, Bumi Resources Mineral
(Rp 2.7 trillion to Rp 2.74 trillion), offshore marine company Wintermar Offshore Marine (Rp 288 billion to Rp 378 billion) and Midi Utama Indonesia, which runs Alfa Midi retail outlets (Rp 97.28 billion to Rp 118.9 billion).

If these companies went ahead with their IPO plans before the end of the year, the total funds raised through IPOs could reach Rp 30 trillion for the year.

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