IPO & Rights Issue Indonesia: Kresna Graha, Mega Manunggal & Bess Finance
Several Indonesian companies decided to delay their initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in 2014 due to great political uncertainties brought about by Indonesia’s ‘political year’ (legislative and presidential elections). Moreover, sluggish global economic growth, slowing domestic growth as well as the scrapping of the Federal Reserve’s quantitative easing program impacted on investors’ confidence. Therefore, only 20 companies conducted an IPO last year. This year we should see more IPOs in Indonesia.
However, in the first five months of 2015 only five Indonesian companies conducted an IPO on the IDX (including the re-listing of Mitra Energi Persada) causing doubts whether the target of the IDX (which targets to see a total of 32 IPOs on the IDX in 2015) can be achieved.
In addition to our earlier column Companies Expected to IPO on the Indonesia Stock Exchange in 2015 we present new information on several expected IPOs below.
IPO Mega Manunggal Property
Mega Manunggal Property, a logistic warehouse developer and supplier founded in 2010, announced to have set the price for its initial public offering (IPO) at IDR 585 (USD $0.04) per share. It offers 1.7 billion shares, equivalent to 30 percent of the company’s paid-up capital, through the IPO. As such, the company is set to collect IDR 1 trillion (USD $76 million) by ‘going public’. Lead underwriter for this IPO is Indo Premier Securities. Proceeds from the IPO will be used to acquire a 50 to 60 hectares land bank for new warehouses. Listing on the Indonesia Stock Exchange (IDX) is scheduled for 12 June 2015.
IPO Bentara Sinergies Multifinance
Consumer financing firm Bentara Sinergies Multifinance (Bess Finance) aims to raise about IDR 350 billion (USD $26.5 million) by selling between 30 and 40 percent of its enlarged share capital through an initial public offering (IPO) near the end of 2015. Bess Finance President Director Anta Winarta said that the primary objective of the IPO is to boost the company’s capital structure (currently the company’s capital stands at IDR 220 billion). Underwriter for Bess Finance’s IPO is Danareksa Sekuritas.
Bess Finance is a consumer financing firm that is mainly focuses on providing financing solutions for consumers who want to buy motorcycles and cars. It targets to finance IDR 1.4 trillion (USD $106 million) worth of motorcycle purchases and IDR 300 billion (USD $23 million) worth of car purchases in 2015. Recently, the central bank of Indonesia (Bank Indonesia) announced it plans to relax down payment requirements for purchases of houses, motorcycles and cars in an effort to boost economic growth. In 2014, Bess Finance posted net income of IDR 55 billion (USD $4.2 million). It targets a 27 percentage point growth (y/y) in net income to IDR 70 billion in 2015.
Rights Issue Kresna Graha Securindo
Listed financial services firm Kresna Graha Securindo plans to raise between IDR 3 trillion and IDR 4 trillion (roughly USD $260 million) from a rights issue in the second half of the year, provided that market conditions are conducive, in a bid to collect additional funds for further expansion. According to an anonymous source, Jakarta-based Kresna Graha Securindo intends to use part of the proceeds from the rights issue to acquire more than one multi-finance or insurance firm.
Kresna Graha Securindo is set to manage five initial public offerings (IPOs) on the Indonesia Stock Exchange (IDX) in 2015. In the first quarter of 2015, the company posted net income growth of 94 percent to IDR 76.5 billion (USD $5.8 million) from the same period one year earlier. Meanwhile, the company’s revenue climbed 57 percent (y/y) to IDR 109.0 billion (USD $8.3 million) over the same period.
Currently, Kresna Graha Securindo has two subsidiaries: asset management firm Kresna Asset Management and securities & brokerage firm Kresna Securities.
Last Update: 29 Mar 2021
IPOs on the Indonesia Stock Exchange up to 1 June 2015
| Company | P: 29 Mar 2021 | P: 28 Mar 2021 | Gain/Loss | P/E ttm | Yield % | Gain/Loss YTD |
| Bank Yudha BhaktiBBYB | 498 | 494 | 0.81% | N/A | 0.00% | 40.68% |
| Mitra Keluarga KaryasehatMIKA | 2,720 | 2,750 | -1.09% | N/A | 0.00% | 4.62% |
| Mitra Energi PersadaKOPI | 565 | 565 | 0.00% | N/A | 0.00% | 13.00% |
| PP Properti Tbk.PPRO | 75 | 77 | -2.60% | N/A | 0.00% | -19.35% |
| Puradelta LestariDMAS | 232 | 238 | -2.52% | N/A | 0.00% | 0.87% |
| Combined Total | 4,090 | 4,124 | -0.82% | 8.29% |
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available
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