Shares of Bali Bintang Sejahtera, the company behind Bali United, opened 69 percent higher at Rp 296 apiece on the Indonesia Stock Exchange (IDX) on Monday. (B1 Photo/Primus Dorimulu)
Bali United Scores Big in Stellar Stock Market Debut
BY :FAISAL MALIKI BASKORO
JUNE 17, 2019
Jakarta. Professional Indonesian football club Bali United made a stellar debut on the country's stock market on Monday.
Shares of Bali Bintang Sejahtera, the company behind the club, opened 69 percent higher at Rp 296 apiece on the Indonesia Stock Exchange (IDX), compared with an only 0.2 percent increase in the benchmark stock market, reflecting keen interest from investors and fans alike in the country's football industry.
Bali United was the first club in Indonesia and Southeast Asia to go public.
The club raised Rp 350 billion ($24.4 million) in last week's initial public offering, underwritten by Buana Capital Securities and Kresna Sekuritas, after its original plan was delayed a few weeks.
The club, based on Indonesia's popular holiday island, plans to use Rp 212 billion of the proceeds to recruit new players and coaches, and to expand its football academy and merchandise store. About Rp 67 billion will be allocated toward capital expenditure, while the remainder will be invested in the club's subsidiaries, including restaurants and a media production house.
Bali United is among few clubs in Indonesia that are run professionally and which sustain themselves without any help from the local government, paving the way for more a professional sports management culture to take root.
Bali United chief executive Yabes Tanuri earlier expressed hope that the listing world enable supporters to share ownership of their beloved club.
The club joined the ranks of only a handful of football clubs around the world that have listed on the capital markets. These include AS Roma, Juventus, Lazio, Borussia Dortmund, Celtic, Arsenal and Manchester United.