Stock IPOs are Lining Up, Check Before Buying

Reporter: Ridwan Nanda Mulyana | Editor: Tiyas Septiana

KONTAN.CO.ID -  JAKARTA. The series of initial public offerings is still busy in the middle of this year. Currently, there are seven companies that are undergoing the initial public offering (IPO) process.

One of them is scheduled to list on the Indonesia Stock Exchange (IDX) today (19/6), which is a company from the Bakrie Group, PT VKTR Teknologi Mobilitas Tbk (VKTR). In addition, there are six prospective issuers who are holding book building or have started entering the offering period.

Apart from the prospective issuers that have been registered in e-IPO, there are three State-Owned Enterprises (SOEs) entities that are rumored to be preparing to release shares to the public. 

They come from jumbo-scale-soes entities, from the Pertamina Group, namely PT Pertamina Hulu Energi (PHE), and from the PT Perkebunan Nusantara (PTPN) Group, namely Palm Co and Sugar Co. The IPO value targeted is also quite large. 

The Ministry of SOEs had mentioned that PHE would release 5%-10% of IPO shares. Palm Co is also targeted to IPO this year with a target IPO fund ranging from Rp 5 trillion to Rp 10 trillion. 

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CEO of Edvisor.id, Praska Putrantyo said, in terms of the industrial sector, a number of prospective issuers have attractive prospects. Especially those coming from the power-based automotive parts industry, raw materials from copper mining, and logistics services.

In terms of business scale and fund acquisition target, there are two prospective issuers that attract market attention. Namely, PT Amman Mineral Internasional Tbk (AMMN), which is eyeing fresh funds of up to Rp 12.93 trillion, and VKTR, which is targeting funds of Rp 875 billion.

In terms of valuation, among the prospective issuers, Praska highlighted AMMN, which has a price earning ratio (PER) still below 10 times and price to book value (PBV) in the range of 2 times. Praska said the valuation is quite competitive in its sector.

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As for SOE entities that will IPO, Praska assesses that the industry is quite prospective. However, it needs to be examined further regarding plans, targets, and market valuations when holding a public offering.

Stock Market Observer and Founder of WH Project, William Hartanto added, regarding the current prospective issuers, VKTR and AMMN have enough momentum when mining stocks and electric vehicles began to strengthen last week.
"Look at the shares circulating in the community as well, if there are too many shares, it will cause high liquidity, which is less attractive," he said yesterday. 

Meanwhile, Stock Market Observer, Teguh Hidayat reminded market participants not to get caught up in pompom stock IPO. "There are many examples, in the end, it goes down and makes investors lose," said Teguh.