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Ashmore becomes first fund management company to list shares on IDX
PT Ashmore Asset Management raised about Rp 211 billion (US$15 million) in fresh funds from its recent initial public offering (IPO)
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A giant display shows share price movement on the Indonesia Stock Exchange (IDX). PT Ashmore Asset Management Indonesia listed its shares on the IDX on Tuesday. (Antara/Sigid Kurniawan)
T
he scandals that have rocked the country’s mutual fund industry have not deterred investment management firm PT Ashmore Asset Management Indonesia from listing its shares on the local bourse.
The Financial Services Authority (OJK) last year suspended the sales of several mutual fund products from Narada Asset Manajemen and Minna Padi Aset Manajemen after they were proven to have violated the authority’s regulations on mutual funds. The OJK even went as far as to liquidate six of Minna Padi Aset Manajemen’s products and suspend its selling licenses.
The Attorney General’s Office (AGO) also called as witnesses 11 investment managers that helped manage PT Asuransi Jiwasraya’s investments, which later turned sour and caused the company to suffer trillions of rupiah in losses.
The mutual fund scandal did not prevent the local unit of the London-based investment manager Ashmore Group Plc from carrying out its initial public offering (IPO). “We have been planning our IPO over the past two years,” Ashmore Asset Management Indonesia director Arief Cahyadi Wana told the press after the listing of the company’s shares at the Indonesia Stock Exchange (IDX) in Jakarta on Tuesday.
Listed under the ticker AMOR, Ashmore became the first investment management firm to be listed on the IDX. The company raised about Rp 211 billion (US$15 million) in fresh funds from the IPO and about 50 to 75 percent of the IPO proceeds will be used to finance the company’s plan to boost its digital presence, either by developing its own platform or in collaboration with e-commerce players, Arief said.
He further explained that a digital platform could be the key for the company to expand its market as it could help it to reach more people in the middle-to-lower economic segment that is often overlooked by the banking industry.
The Indonesian Central Securities Depository (KSEI) recorded a total of 1.77 million single investor identifications (SID) last year, an increase of 77.65 percent year-on-year (yoy). The sharp increase is partly due to the presence of online mutual fund platforms like Bareksa, Tanamduit and XDana, as well as e-commerce platforms like Bukalapak and Tokopedia that have branched out to sell mutual funds on its platforms.
