Indonesia's economic acceleration, the nation's recently obtained investment grade status from Standard & Poor's (S&P) and the (near) record high position of the benchmark Jakarta Composite Index makes it more attractive for Indonesian companies to conduct an initial public offering (IPO) on the Indonesia Stock Exchange. Moreover, the Federal Reserve is committed not to cause too much volatility in markets by acting cautiously and communicating its (possible future) moves clearly.
Over the past one and a half weeks, a total of three companies went public in Indonesia: (1) First Indo American Leasing, (2) Alfa Energi Investama, and (3) Totalindo Eka Persada.
First Indo American Leasing
Consumer lending company First Indo American Leasing became the 544th listed company in Indonesia on 8 June 2017. It collected IDR 80.4 billion by selling a 41.18 percent stake to the public. All funds generated through this corporate move are allocated to working capital (specifically credit expansion). Since its listing the company's shares have fallen 3.03 percent and, as such, can be labelled the least successful IPO among the three.
Stock Quote First Indo American Leasing - FINN:
Alfa Energi Investama
Energy company and coal miner Alfa Energi Investama was added to the Indonesia Stock Exchange on 9 June 2017, raising IDR 150 billion by selling a 23.08 percent stake to the public. Funds will be used to refinance debt, build new infrastructure, and for working capital. Since its listing its shares have surged a whopping 126 percent.
Stock Quote Alfa Energi Investama - FIRE:
Totalindo Eka Persada
Lastly, construction company Totalindo Eka Persada was added to the Indonesia Stock Exchange on 16 June 2017 and immediately saw its shares rise by almost 50 percent on its debut. It collected IDR 516 billion in funds by selling a 25 percent stake to the public. These funds will be used to refinance debt, for working capital, and capital expenditure.
Stock Quote Totalindo Eka Persada - TOPS:
So far in 2017 a total of 11 companies have conducted an IPO on the Indonesia Stock Exchange and therefore we expect to see a rebound in the number of IPOs this year. Last year only 14 companies went public, the lowest figure since 2009.
Last Update: 20 Mar 2018
IPOs on the Indonesia Stock Exchange up to 16 June 2017
|Company||P: 20 Mar 2018||P: 19 Mar 2018||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|Forza Land IndonesiaFORZ||835||835||0.00%||N/A||0.00%||8.44%|
|Industri dan Perdagangan Bintraco DharmaCARS||1,690||1,660||1.81%||N/A||0.00%||23.36%|
|Nusantara Pelabuhan HandalPORT||640||635||0.79%||N/A||0.00%||81.82%|
|Pelayaran Tamarin SamudraTAMU||3,720||3,720||0.00%||N/A||0.00%||2.20%|
|Cahayasakti Investindo SuksesCSIS||925||1,230||-24.80%||N/A||0.00%||-38.13%|
|Terregra Asia EnergyTGRA||530||530||0.00%||N/A||0.00%||-2.75%|
|First Indo American Leasing Tbk.FINN||150||142||5.63%||N/A||0.00%||40.19%|
|Alfa Energi Investama Tbk.FIRE||1,425||1,425||0.00%||N/A||0.00%||6.34%|
|Totalindo Eka Persada Tbk.TOPS||4,180||4,180||0.00%||N/A||0.00%||17.09%|
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