Only 17% of the Indonesia Stock Exchange’s (BEI) target to have 35 new listed companies this year has been reached. Issuers are still waiting for more stable global conditions related to the plan of the Fed to raise interest rates, for the Brexit poll results, as well as the uncertainty about the Tax Amnesty Law. Will IDX be flooded by IPOs in the second half of 2016? With such a short amount of time, there should at least be 4-5 new issuers listed on the stock exchange every month until the end of this year.
Wientoro Prasetyo, President Director of PT Lautandhana Securindo, said some issuers are to postpone the listing of its shares to the second half of 2016 because economic conditions at the time are estimated to be better than in the first half. “If the Tax Amnesty Law was passed, the money from this will go to the repatriation of capital markets and a positive sentiment for the company going for IPO. Moreover, if the funds could be, for example, locked-up for 8-month,” said Wientoro.
Stephanus Turangan, President Director of PT Trimegah Securities Tbk (TRIM), also expects a lot of tax amnesty. “Tax amnesty would boost the market liquidity. I received a lot of inquiries from banks overseas custodian of the investments that they may choose if the Tax Amnesty Law was passed,” said Stephanus. This will encourage prospective issuers to soon be listed on the Stock Exchange.
As of June 16, 2016, only six new issuers have come into the market. The six companies are PT Mahaka Radio Integra Tbk (MARI), PT Bank Artos Indonesia Tbk (ARTO), PT Mitra Pemuda Tbk (MTRA), PT Bank Ganesha Tbk (BGTG), PT Cikarang Listrindo Tbk (POWR), and PT Sillo Maritime Perdana Tbk (SHIP). PT Duta Intidaya Tbk (DAYA) will be the seventh issuer to be listed on the Stock Exchange on June 28, 2016. (*)
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