Initial public offering (IPO) of PT Cikarang Listrindo Tbk (POWR) on June 8-9, 2016 was oversubscribed by 2.5 times. Institutional investors dominated POWR’s stocks by 98% whereas retail investors only 2% from 1,608,716,000 floating shares. Bigger portion of institutional investors indicates the company wants long-term investors to hold its shares.
Moleonoto The, President Director of PT Indopremier Securities, POWR’s IPO underwriter, said that 80% of institutional investors are foreign investors. “Oversubscription from retail investors reached 11 times but allocation-wise it is only Rp 24 billion,” Moleonoto said. The company obtains total IPO proceeds worth Rp 2.4 trillion.
Total offered stocks during Cikarang Listrindo’s IPO equals to 10% of fully issued and paid-up capitals. Together with IPO, Cikarang Listrindo’s stakeholders also divested 5% of stakes which are worth Rp 1.1 trillion. Thus, the company’s total proceeds amounted to Rp 3.5 trillion.
On Tuesday’s trade opening (6/14), POWR’s stock price climbed 6.7% reaching its highest at Rp 1,645 per share. As of 10.30 Western Indonesia Time (WIB), POWR’s stock price stayed at Rp 1,550 per share, up 3.3% from opening price of Rp 1,500 per share. (*)
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