Indonesia's new Financial Services Authority (OJK) is currently processing plans of several companies that intend to conduct their initial public offering (IPO) on the Indonesia Stock Exchange in the first quarter of 2014. Continued enthusiasm of companies for a listing on the Indonesia Stock Exchange (IDX) indicates bullish sentiment. Director of the IDX, Ito Warsito, expects a total of 15 new listings in Q1-2014, while the target for full year 2014 remains at 30. In 2013, 31 companies were added on the IDX.
The companies that are currently being evaluated by the OJK are Intermedia Capital, Graha Layar Prima (Blitzmegaplex), Bali Towerindo Sentra, Wika Beton, Link Net and Bumi Raya Investindo.
Intermedia Capital, subsidiary of the Bakrie Group-controlled Visi Media Asia (VIVA), aims to sell 15 percent of its enlarged capital in the IPO. Half of the shares that will be listed on the IDX are newly issued shares by Intermedia Capital, while the other half are existing shares owned by VIVA. Intermedia Capital owns free-to air television channel ANTV, one of the biggest television channels of Indonesia. Nielsen Media Research stated that between 2008 and 2012, ANTV’s audience share grew 30 percent.
Graha Layar Prima (Blitzmegaplex), which is the second-largest cinema operator in Indonesia, plans to use funds generated through an IPO to build 15 new cinemas (USD $35 million). As competition is becoming more intense in Indonesia's cinema industry, the company intends to expand its number of cinemas from 10 to 25 in the next three years. According to the Indonesian Cinema Association, Indonesia currently has 700 cinemas, of which 70 percent is concentrated in the Jakarta region. Indonesia's cinema industry is still closed for foreign investment.
Wika Beton, subsidiary of majority state-owned construction company Wijaya Karya, plans to sell 20 percent of its enlarged capital through the IPO. The company has appointed Bahana Securities, Mandiri Sekuritas, Danareksa Sekuritas and Sucorinvest Central Gani to act as underwriters. Being closely linked to the Indonesian government (parent company Wijaya Karya is for 65 percent state-controlled), Wika Beton is in a good position to benefit from the government's aim to increase efforts to develop the country's infrastructure. The IPO of Wika Beton will be the largest IPO planned for Q1-2014 and highly awaited for by investors. The company plans to raise IDR 1.5 trillion (USD $125 million).
Bali Towerindo Sentra, a telecommunication infrastructure company, appointed RHB OSK Securities Indonesia as the underwriter for the IPO. The company's assets are currently worth approximately IDR 400 billion to IDR 500 billion (USD $32 million to USD $40 million).
Link Net, the second largest fixed broadband and cable TV operator in Indonesia, provides Internet services to corporations and individuals.
Bumi Raya Investindo, subsidiary of Tiga Pilar Sejahtera Food, is a palm oil producer that aims to obtain IDR 500 billion (USD $42 million) through the IPO.
Director of the IDX Ito Warsito said that the coming legislative and presidential elections (April and July 2014) are a challenge because business players tend to wait and see for the new macro economic policy that will be outlined by the new government in the second half of the year.
Previously, Bank Panin Syariah, Asuransi Mitra Maparya, Bank Ina Perdana and Capitol Nusantara Indonesia conducted an IPO in January 2014, while Tunas Alfin was re-listed.
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