Being the Most Active in Asia, IDX Awaits Promising IPOs
KONTAN.CO.ID - JAKARTA. The corporate action of initial public offering (IPO) is lively in the country. The Indonesia Stock Exchange (IDX) noted that until May 26, 2023, there were 40 issuers that listed shares with an emission value of IDR 32.7 trillion.
This number will continue to grow. Currently, there are 43 companies in the IDX IPO pipeline. IDX Director of Corporate Valuation I Gede Nyoman Yetna claims that, since 2018, IDX has consistently succeeded in conducting the newest share listings among exchanges in the ASEAN region.
The interest of company owners and management in Indonesia in an IPO is still high. "This is reflected in the 43 potential companies that have entered the IPO pipeline," he said, Monday (5/29).
The stretching of IPO activity on the IDX can indeed be a light in the midst of sluggish global IPOs. Ernst & Young (EY) noted that globally, there were 299 companies that held IPOs in the first quarter of 2023, down 8% on an annual basis. The value of IPO emissions on global exchanges also fell 61% to US$ 21.5 billion. Asia is one of the regions that is busy with IPOs.
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Ease of listing
Avere Investama Director Teguh Hidayat said that Indonesia's IPOs are high. However, in terms of market capitalization, it is inferior to neighboring countries. "Our IPOs are rampant because of the ease of listing companies. The quantity increased, but the quality decreased," said Teguh.
Head of Research at Surya Fajar Sekuritas, Raphon Prima, agreed, IPOs in Indonesia are attractive because the capital market industry has not yet developed. The number of issuers on the IDX is below 1,000.
Countries like Hong Kong, Japan, and India have thousands of issuers. "So, IPOs in Indonesia will continue to boom," he said.
However, the majority of IPO shares at this time have not been able to lift the performance of the JCI because the majority of issuers are on the lower-middle asset scale.
In the near future, there will be only one or two companies with large emission values. Amman Mineral International is one of them. Amman is said to be eyeing funds of US$800 million to US$1 billion from the IPO.
