Update COVID-19 in Indonesia: 1,769,940 confirmed infections, 49,205 deaths (22 May 2021)
7 June 2021 (closed)
USD/IDR (14,146) -6.00 -0.04%
EUR/IDR (17,335) +57.05 +0.33%
Jakarta Composite Index (6,069.94) +4.77 +0.08%
On Monday (02/06), Indonesian Internet services provider Link Net conducted its initial public offering (IPO) on the Indonesia Stock Exchange (IDX). Despite the negative market sentiments (brought on by the release of Indonesia's wide April 2014 trade deficit), the company's shares rose 50 percent on its trading debut. Offered at IDR 1,600 (USD $0.14) per share at the start of trading, the shares finished at IDR 2,600 (USD $0.28) on Monday. Ciptadana Securities was appointed as lead underwriter for the IPO.
Proceeds of the IPO will be used for development of the company's Internet service, content development, content distribution as well as for the development of an in-house TV channel. The company aims to be a key player in the Internet services industry, competing with companies such as Telekomunikasi Indonesia (which has 27.8 million data subscribers). Earlier this year, the company expanded to the city of Bandung (West Java). It already provides Internet services in Jakarta and Surabaya (East Java).
Link Net, known for its FastNet broadband Internet service, aims to provide broadband services to around 500,000 additional households in the greater Jakarta area by the end of 2015. Currently, it has around 332,900 broadband subscribers and provides Internet services to more than one million households in the Greater Jakarta region and Surabaya (East Java). Furthermore, it provides data communication services to more than 1,100 corporate clients and has 329,000 cable-TV subscribers.
The company has reserved IDR 1 trillion (approximately USD $87 million) for capital expenditure (capex) in 2014. This includes the purchase of equipment needed for further business expansion. About 90 percent of the capex originates from internal cash reserves, while the remainder will be obtained through bank loans.
Link Net's parent company is First Media, an Indonesian cable television and Internet provider. This year so far, 12 Indonesian companies have conducted an IPO on the Indonesia Stock Exchange.