On Monday (09/07) three companies made their trading debuts on the Indonesia Stock Exchange. So far this year a total of 26 companies have completed their initial public offering (IPO) on the Indonesia Stock Exchange. And considering there are still almost six more months to go in 2018 - while various IPOs are in the pipeline - it should become a very good year for IPOs in Indonesia.
Remarkably, high demand for IPOs on the Indonesia Stock Exchange comes at a time when global uncertainties are at a very high level. Particularly tensions surrounding trade tensions (led by the USA and China) and monetary tightening in the USA are encouraging capital outflows from emerging markets such as Indonesia.
Batavia Prosperindo Trans
Vehicle rental company Batavia Prosperindo Trans, which is part of the Batavia Group (with Malacca Trust Pte Ltd as the holding company), offered 400 million shares - equivalent to 25.81 percent of the company's share capital - to the public through the IPO for a price of IDR 100 per share. As such, the company gained IDR 40 billion (USD $2.8 million) from the IPO. Panin Sekuritas acts as underwriter.
Paulus Handigdo, President Director of Batavia Prosperindo Trans, said the company's IPO was oversubscribed two times, reflecting strong investor appetite. He added that all proceeds that are obtained from the IPO (after deducting the expenses that are related to the IPO process) will be used to increase the company's car fleet.
In more detail, 50 percent of the IPO proceeds will be used for the settlement of debt related to vehicles that have already been purchased. The remaining 50 percent will be used as down payment and further payments related to upcoming purchases of new vehicles.
Batavia Prosperindo Trans's revenue grew rapidly from IDR 6.23 billion in 2015 to IDR 60.62 billion in 2017. This increase came due to the rise in rental contracts for existing and new corporate customers.
Batavia Prosperindo Trans is a sister company of publicly listed financial services firm Batavia Prosperindo Internasional.
Jaya Sukses Makmur Sentosa
Property company Jaya Sukses Makmur Sentosa, which has its headquarters in Sidoarjo (East Java), is the second company to make its trading debut on Monday (09/07). The company offered 1.5 billion new shares - equivalent to 15.08 percent of the company's share capital - to the public for an initial price of IDR 163 per share, hence raising IDR 244.5 billion (approx. USD $17.1 million) in new funds.
Belinda Natalia, President Director of Jaya Sukses Makmur Sentosa, said the IPO proceeds will be used to complete two high-rise projects: (1) Voza Premium Office (which will obtain 53 percent of IPO proceeds; the project is developed by subsidiary Tanrise Indonesia), and (2) The 100 Residence (47 percent; project is developed by subsidiary Rodeco Indonesia). Both projects are located in Surabaya (East Java), Indonesia's second-largest city.
Jaya Sukses Makmur Sentosa's revenue reached IDR 229.96 billion (approx. USD $16.1 million) in 2017, up 37 percent from the IDR 168.19 billion worth of revenue that was collected in the preceding year. However, the high financial burden caused the company's net profit to drop to IDR 16.12 billion in 2017 (from IDR 43.22 billion in 2016).
Still, the company is optimistic that the property sector will offer plenty of potential in the coming years. This is evident from sales growth and the rising property price index. The apartment, office and house segments all show positive price indicators in East Java, especially in Surabaya.
Indonesia Kendaraan Terminal
Indonesia Kendaraan Terminal, a subsidiary of Indonesia's state-owned port operator Pelabuhan Indonesia II (also known as Pelindo II), was the third company to make its trading debut on the Indonesia Stock Exchange today. The company offered 509.1 million shares - equivalent to 28 percent of its share capital - to the public for a price of IDR 1,640 per share, hence obtaining IDR 835 billion (approx. USD $58 million) in new funds.
Chiefy Adi Kusmargono, President Director of Indonesia Kendaraan Terminal, said he hopes that his company will rank among the world's top five vehicle terminals in the next five years.
Half of IPO proceeds will be allocated to the company's capital expenditure budget for business development, including terminal development, land expansion, and for adding capacity and facilities as well as supporting equipment. Meanwhile, 25 percent is reserved for long-term lease contract extensions, while the remaining 25 percent will be allocated to the company's working capital budget (to support operational activities).
In 2017, Indonesia Kendaraan Terminal's revenue reached IDR 422.1 billion (approx. USD $29.5 million), up from IDR 314.3 billion in the preceding period.
So far in 2018 a total of 26 companies have been added to the Indonesia Stock Exchange:
Last Update: 18 Sep 2018
IPOs on the Indonesia Stock Exchange up to 9 July 2018
|Company||P: 18 Sep 2018||P: 17 Sep 2018||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|LCK Global KedatonLCKM||322||324||-0.62%||N/A||0.00%||3.21%|
|Borneo Olah Sarana SuksesBOSS||2,650||2,690||-1.49%||N/A||0.00%||341.67%|
|Sky Energy IndonesiaJSKY||885||900||-1.67%||N/A||0.00%||47.50%|
|Indah Prakasa Sentosa Tbk.INPS||2,060||2,060||0.00%||N/A||0.00%||397.58%|
|Gihon Telekomunikasi Indonesia Tbk.GHON||1,060||1,060||0.00%||N/A||0.00%||-39.60%|
|Tridomain Performance Materials Tbk.TDPM||392||394||-0.51%||N/A||0.00%||14.62%|
|Dafam Property Indonesia Tbk.DFAM||1,105||1,105||0.00%||N/A||0.00%||466.67%|
|Charnic Capital Tbk.NICK||146||146||0.00%||N/A||0.00%||-57.06%|
|Bank Tabungan Pensiunan Nasional Syariah Tbk.BTPS||1,650||1,645||0.30%||N/A||0.00%||13.01%|
|Bank BRIsyariah Tbk.BRIS||590||590||0.00%||N/A||0.00%||8.26%|
|Surya Pertiwi Tbk.SPTO||1,005||995||1.01%||N/A||0.00%||-15.55%|
|Royal Prima Tbk.PRIM||1,185||1,175||0.85%||N/A||0.00%||58.00%|
|Medikaloka Hermina Tbk.HEAL||3,350||3,370||-0.59%||N/A||0.00%||5.68%|
|Sarimelati Kencana Tbk.PZZA||1,105||1,115||-0.90%||N/A||0.00%||0.00%|
|Guna Timur Raya Tbk.TRUK||140||139||0.72%||N/A||0.00%||-59.30%|
|Asuransi Tugu Pratama Indonesia Tbk.TUGU||2,950||2,920||1.03%||N/A||0.00%||-18.06%|
|Steadfast Marine Tbk.KPAL||394||394||0.00%||N/A||0.00%||102.05%|
|Sriwahana Adityakarta Tbk.SWAT||126||129||-2.33%||N/A||0.00%||-53.68%|
|MNC Studios International Tbk.MSIN||396||396||0.00%||N/A||0.00%||-24.57%|
|Trimuda Nuansa Citra Tbk.TNCA||130||132||-1.52%||N/A||0.00%||-48.82%|
|Map Aktif Adiperkasa Tbk.MAPA||4,180||4,180||0.00%||N/A||0.00%||32.70%|
|Transcoal Pacific Tbk.TCPI||3,020||3,100||-2.58%||N/A||0.00%||1,190.60%|
|Batavia Prosperindo Trans Tbk.BPTR||98||98||0.00%||N/A||0.00%||-42.35%|
|Jaya Sukses Makmur Sentosa Tbk.RISE||660||650||1.54%||N/A||0.00%||139.13%|
|Indonesia Kendaraan Terminal Tbk.IPCC||1,485||1,380||7.61%||N/A||0.00%||-13.41%|
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