Shares of Newly Listed Companies Soar on Strong Investor Appetite

Kioson Komersial Indonesia is set to become the country's first start-up company to conduct an initial public offering at the Indonesia Stock Exchange, setting a path for raising capital for other start-ups to follow. (Antara Photo/Akbar Nugroho Gumay)

By : Sarah Yuniarni | on 11:55 AM July 13, 2017
Category : Business, Corporate News

Jakarta. Shares of newly listed companies are soaring in the Indonesia Stock Exchange or the IDX, signalling a strong appetite from investors for local stocks and confidence in the companies's performance as economic conditions in the country continue to stabilize.

So far this year, a total of 20 local companies had undertaken initial public offering or IPO, reaping Rp 37.8 trillion ($2.8 billion) in fresh funds. Dozens of these newly-listed companies have seen their stock price soar significantly from its IPO price.

Pelayaran Tamarin Samudera, an integrated offshore shipping company, recorded the highest stock price increase among the companies, closing at Rp 1,805 per share on Wednesday (12/07) — 16 times its IPO price.

Local property developer Sanur Hasta Mitra followed close behind after its stock price soared by more than 1,000 percent to Rp 1,505 per share, 14 times its IPO price.

Marga Abhinaya Abadi, a hotel and restaurant operator, has seen its stocks increase in price more than 8.7 times, closing at Rp 975 per share on Wednesday. Multifinance company First Indo American Leasing's stocks meanwhile soared 3.6 times its original value to Rp 382 per share.

Strong Demand From Investors

"Some of these stocks have been oversubscribed dozens of times, which means there is huge confidence from investors in the future prospect of these companies," Alfred Nainggolan, an equity analyst from local brokerage firm Koneksi Kapital, said on Wednesday.

Sanur Hasta Mistra's IPO has been oversubscribed 6.58 times.

"The huge demand from investors is giving a positive signal to the stock market. People are seeing that these newly listed companies have outstanding fundamental performance and that the economy will continue growing in Indonesia," Alfred said.

Not every company's story has been rosy, though. Four companies have seen their stock price go down even lower than its IPO price.

Port operator Nusantara Pelabuhan Handal recorded a decline of 14 percent to Rp 460 per share; Bintraco Dharma, an automotive dealer and financing company, saw its shares plummet 12.1 percent in value to Rp 1560 per share; Hartadinata Abadi, a jewelry producer, also saw its stock price plummet 4 percent to Rp 288 per share; Integra Indocabinet, a furniture producer, saw a 0.76 percent decline in it stock price to Rp 258 per share.

With fresh funds in their hands, Binaartha Sekuritas equity analyst Nafan Aji said these newly-listed companies are set to grow by funding business expansions using the proceeds from their IPO.

Nafan said investors take special note of how companies are going to spend their IPO proceeds. If the money is used just to pay back debts, a company's stocks will become less attractive.

Despite the good news, Alfred noted market valuation of these newly listed companies's stocks remains small. This means the stocks are still prone to speculations and investors will carefully evaluate their long-term investment in Indonesian shares.

Marks Dynamics' Market Debut

Mark Dynamics, a ceramic hand cast manufacturer, made a sizzling debut in the stock market on Wednesday.

The company's stocks, traded as MPOW, closed at Rp 374 per share, 49.6 percent higher than its IPO price. This compared to a 0.79 percent gain in the broader index.

The company sold 160 million new shares, equivalent to 21 percent of its total equity, at an offering price of Rp 250 per share in an IPO last month.

Mark Dynamics was the 20th company to go public this year and raised Rp 40 billion in fresh funds from its IPO, lower than its initial target of Rp 48 billion.

Mark Dynamics will use around 67 percent of its IPO proceeds to pay back loans and use the rest to acquire land and construct new facilities at its factory in Deli Serdang, North Sumatra.

Established in 2002, Mark Dynamics produces and supplies ceramic hand casts for medical, household and industrial use. The company exports its products to neighboring countries Malaysia, Thailand and Vietnam.

The following list details how the shares of 20 newly listed companies fare this year at the IDX:

1. Shares of Cahaya Sakti Investindo Sukses, a property development company, closed at Rp 810 a piece on Wednesday. Its IPO price was Rp 300 a piece.

2. Shares of Terregra Asia Energy, a renewable energy company, closed at Rp 412 a piece on Wednesday. Its IPO price was Rp 212 a piece.

3. Shares of First Indo American Leasing, a multifinance company, closed at Rp 382 a piece on Wednesday. Its IPO price was Rp 105 a piece.

4. Shares of Alfa Energi Investama, a coal miner, closed at Rp 1,66o a piece on Wednesday. Its IPO price was Rp 500 a piece.

5. Shares of Totalindo Eka Persada, a construction company, closed at Rp 790 a piece on Wednesday. Its IPO price was Rp 310 a piece.

6. Shares of Kirana Megatara, a rubber producer, closed at Rp 585 a piece on Wednesday. Its IPO price was Rp 458 a piece.

7. Shares of Armidian Karyatama, a property developer affiliated with publicly-listed Hanson International, closed at Rp 428 a piece on Wednesday. Its IPO price was Rp 428 a piece.

8. Shares of MAP Boga Adiperkasa, an arm of omnichannel retailer Mitra Adiperkasa, closed at Rp 2,760 a piece on Wednesday. Its IPO price was Rp 1,680 a piece.

9. Shares of Megapower Makmur, an independent power producer, closed at Rp 565 a piece on Wednesday. Its IPO price was Rp 565 a piece.

10. Shares of Buyung Poetra Sembada, a rice producer, closed at Rp 310 a piece on Wednesday. Its IPO price was Rp 356 a piece.

11. Shares of Forza Land, a property developer, closed at Rp 600 a piece on Wednesday. Its IPO price was Rp 220 a piece.

12. Shares of Nusantara Pelabuhan Handa, a port operator, closed at Rp 460 a piece on Wednesday. Its IPO price was Rp 535 a piece.

13. Shares of Bintraco Dharma, an automotive dealer and financing company, closed at Rp 1,560 a piece on Wednesday. Its IPO price was Rp 1,750 a piece.

14. Shares of Sanurhasta, a local property developer, closed at Rp 1,505 a piece on Wednesday. Its IPO price was Rp 105 a piece.

15. Shares of Sariguna Primatirta, a bottled water producer, closed at Rp 386 a piece on Wednesday. Its IPO price was Rp 115 a piece.

16. Shares of Pelayaran Tamarin Samudra, an integrated offshore shipping company, closed at Rp 1,805 a piece on Wednesday. Its IPO price was Rp 110 a piece.

17. Shares of Hartadinata Abadi, a jewelry producer, closed at Rp 288 a piece on Wednesday. Its IPO price was Rp 300 a piece.

18. Shares of Integra Indocabinet, a furniture producer, closed at Rp 258 a piece on Wednesday. Its IPO price was Rp 260 a piece.

19. Shares of Marga Abhinaya Abadi, a hotel and restaurant operator, closed at Rp 975 a piece on Wednesday. Its IPO price was Rp 112 a piece.

20. Shares of Mark Dynamics Indonesia, a hand cast manufacturer, closed at Rp 374 a piece on Wednesday. Its IPO price was Rp 250 a piece.

Show More

 
MORE NEWS