Eight Indonesian Companies Undertake IPOs So Far in 2016


JULY 10, 2016

Bandung. The Indonesia Stock Exchange recorded eight companies that have undertaken initial public offerings in the first semester of this year.

With these IPOs, the IDX has registered 527 listed companies. The number is still smaller than its Southeast Asian counterparts such as, Thailand (644 listed companies), Singapore (766 listed companies) and Malaysia (904 listed companies), according to the IDX official website.

The IDX, which has been actively encouraging companies to go public, has set a target to see at least 11 companies undertake IPO in the first half of this year and 35 more in the second half.

Among efforts by the country's main stock exchange to encourage IPOs include to establishing online information service called 'go public' in a bid to attract more firms and also to educate companies about the benefits of going public.

"With the 'go public' service, we hope that companies in need for funds can understand that IPO process is not that complicated and expensive," Tito Sulistyo said in a statement on the IDX official website.

These eight companies went public in the first half of the year:

1. Cikarang Listrindo

Power producer, Cikarang Listrindo raised Rp2.4 trillion ($180 million) on June 14, selling about 20 percent of its enlarged capital, becoming the largest IPO so far this year. The company plans to use 70 percent of the proceeds to build power generation capacity, while the remainder will cover operational costs.

Citigroup Securities Indonesia, Deutsche Securities Indonesia, Indopremier Securities and UBS Securities Indonesia helped assist the share sales.

Cikarang Listrindo is an independent power plant company, providing energy supply to industrial estates. It also one of the companies under property developer Brasali Group controlled by Iwan and Aldo Brasali brothers. The group's other companies include the listed Metropolitan Kentjana, which owns and operates Pondok Indah and Puri Indah malls, and listed property developer Metropolitan Land.

2. Bank Ganesha

Private lender Bank Ganesha held an initial public offerings on May 12, and raised Rp 553.4 billion after selling about 10 percent of the company's capital. Indo Premier Securities, UOB Kay Hian Securities, Equity Securities Indonesia and Phillip Securities Indonesia were the underwriters for the share sale.

The IPO fund will be used for upgrading the lender's category to be classified in book II, which include banks with a core-capital of between Rp 1 trillion and Rp 5 trillion. Currently, Bank Ganesha remains in the Book I classification, with core-capital below Rp1 trillion.

3. Graha Andrasentra Propertindo

The operator of recreational park Jungleland in Bogor, West Java, Graha Andrasentra Propertindo held an IPO on June 29, raising Rp 322 billion funds by offering 2.3 million shares, which is equivalent to 10 percent of its enlarged capital.

Around half of the proceeds funds will be allocated to build more Jungleland recreational parks in several Indonesian big cities, including Bandung, Medan and Palembang, as well as a hotel and water park in Malang, East Java.

Danatama Makmur (II), Equity Securities Indonesia, Hasta Dana Sekuritas Indonesia, Henan Putihrai, Inti Fikasa Securindo, Magenta Kapital Indonesia, Panca Global Securities, Panin Sekuritas, Philip Securities Indonesia, Valbury Asia Securities and Yulie Sekurindo helped assisting the share sale.

The Bogor-based company is controlled by conglomerate Bakrie Group.

4. Mahaka Radio Integra

Mahaka Radio Integra, a radio broadcasting company owned by tycoon Erick Thohir. It raised Rp 78,78 billion from the sale of 20 percent of its enlarged capital on Thursday (11/02). Trimegah Securities served as the underwriter for the transaction. The company plans to use the proceeds of around 40 percent for paying back its debts and the remainder funds for acquiring radio stations in Medan, North Sumatra and Makassar, South Sulawesi.

The company is Jakarta-based media company operates three radio stations, such as 98.7 Gen FM in Jakarta, 103.1 Gen FM in Surabaya and 101 Jak FM in Jakarta. It also one of the radio division of media conglomerate, Mahaka Media. Mahaka currently has one radio live streaming smartphone application, which has accumulated up to 2.5 million downloads using its live streaming service.

5. Duta Intidaya

Duta Intidaya, the operator of Watsons Indonesia, held an IPO on May 28, offering over 478 million new shares, or equivalent to 23 percent of its enlarged capital. The company raised about Rp 91 billion in proceeds.

About 67 percent of the proceeds will be used to opens 47 several new stores in Indonesia, while the remainder will be allocated to repay the company's debts. Watsons personal care is the Hong Kong-based largest personal healthcare and beauty chain store in Asia. It operates around 5,200 stores across Asia and European markets.

6. Silo Maritime Perdana

Indonesian-based shipping company, Silo Maritime Perdana, held an IPO on June 16, raising Rp 77 billion in proceeds. It sold 600 million new shares to investors, or 23.8 percent of its enlarged capital. The company appointed Lautandhana Securindo and UOB Kay Hian Securities as the underwriters for the IPO.

About 90 percent of the proceeds will be used for acquiring upstream oil and gas company service, Suasa Benua Sukses, while the remainder funds will be allocated to the company's working capital. The company has already in existence for 27 years in providing the offshore vessels for almost Indonesia oil and gas companies, which their operation mainly based in Indonesia.

7. Mitra Pemuda

A local construction firm, focuses on steel construction, Mitra Pemuda, offered 175 million new shared equivalent to 21.25 percent of its total equity in the IPO. It raised Rp 31.45 billion in proceeds, which 45 percent of it will be used for the infrastructure construction and the remainder allocated to buy the utilities, loan repayment and capital expenditure. Lautandhana Securindo acted as the underwriter for the company's IPO.

8. Bank Artos Indonesia

Indonesian small lender, Bank Artos Indonesia, became the first Indonesian company to go public this year. It held its IPO in Jan. 12, raising around Rp 31.84 billion, or equivalent to 20 percent shares from its enlarged capital. Proceeds from the IPO will be partly used to develop an Information Technology division, while the remaining funds will be used for loan disbursement.

Binaartha Parama and Erdikha Elit Sekuritas served as the lead underwriters for the IPO. The Bandung-based bank was founded in 1992 and currently operates at least 10 branch offices. It focuses on providing loan disbursement to small and medium-sized companies.