The Indonesia Stock Exchange (IDX)’s target to have 35 issuers to list their stocks this year seems easier said than done. As of June 14, 2016, only five new issuers were listed in the bourse. Potential issuers bide their time before proceeding as they do not want to risk their stock offering getting anything less than optimal especially since Indonesia’s capital market tend to deteriorate. Candidate issuers also consider various external factors, such as the Fed’s interest rate hike plan, oil price recovery, Brexit’s plan, and China’s economy.
Moleonoto The, President Director of PT Indopremier Securities, said that at present the company handles more bond issuance underwritings than stock issuance. “For bonds, most are companies which have issued bonds. For IPO, in our pipeline, there are only two companies,” Moleonoto said without mentioning identity of the companies.
Bond issuance is deemed easier than IPO as bond risks have been measured. Bonds from companies, which have not ever issued bonds let alone directly issued stocks, are not measured by investors. Indopremier has just brought PT Cikarang Listrindo Tbk (POWR) to become fifth issuer that listed their stocks in IDX this year.
Samsul Hidayat, IDX’s Corporate Evaluation Director, said there are now five issuer candidates that are proposing initial public offering (IPO) permit to the Financial Services Authority (FSA). IDX is optimistic that by the first semester of 2016 there will be 11 new issuers that will go public, while the remaining 24 issuer candidates will list their stocks by the second half of 2016. On June 16, 2016, PT Silo Maritime Perdana Tbk will become the sixth issuer to go public. Another candidate issuer which has conducted a mini expose before IDX is PT Graha Andrasenta Propertindo, property management service company owned by PT Bakrieland Development Tbk (ELTY). (*)
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