Companies Expected to IPO on the Indonesia Stock Exchange in 2015
Prospects for initial public offerings (IPOs) in Indonesia are positive in 2015, or, at least more positive than in 2014 when Indonesia’s ‘political year’ (legislative and presidential elections) caused severe political uncertainties in the market. However, the country’s slowing economic growth and looming capital outflows brought about by expected further monetary tightening in the USA before the year-end, has made market participants cautious. The Indonesia Stock Exchange (IDX) expects a total of 32 new listings on the IDX in 2015, up from 20 last year.
So far this year, there have been three IPOs on the IDX (namely Bank Yudha Bhakti, Mitra Keluarga Karyasehat and PP Properti) as well as one re-listing (Mitra Energi Persada). However, the results are somewhat mixed.
For example property developer PP Properti’s listing on the IDX last week (19/05) was a success as the company’s shares rose about 12 percent on the first trading day and the stock was 2.4 times oversubscribed, signalling robust investor demand (and confidence in the company). However, the management of the company had felt forced to offer the shares at the lowest end (IDR 185 per share) of its price range (IDR 185 and IDR 320 per share) as it feared that investors would not be too tempted to buy it at a relatively expensive price given the domestic and global economic context. Moreover, Indonesia’s property sector has slowed in recent years and therefore investors are more cautious now. As such, PP Properti ‘only’ raised IDR 908.7 billion from its IPO (from the company’s earlier estimate of a potential IDR 1.57 trillion).
Generally, investors have become cautious in the first half of 2015. In the last week of April Indonesia’s benchmark stock index (Jakarta Composite Index) suddenly fell 6.6 percent, primarily because listed companies’ weak Q1 corporate earnings informed investors that Indonesia’s GDP growth slowed further in the first quarter. Since 2011 Indonesia has been plagued by slowing economic growth. Indeed, in early May 2015, Statistics Indonesia announced that the Q1-2015 GDP growth figure fell to a five-year low of 4.71 percent (y/y).
Jakarta Composite Index (IHSG):
The IPO of Indonesian hospital operator Mitra Keluarga Karyasehat (March 2015) was much more impressive. Shares of the company were 10.3 times oversubscribed. What is more, the company offered its shares at a relatively expensive price at IDR 17,000 per share (the company had determined its price range for the IPO at between IDR 14,500 and IDR 18,000 per share). In contrast to Indonesia’s property sector, there is optimism about the country’s health-care sector as the government’s universal health-care program (implemented in 2014) implies that hospital services and the pharmaceutical industry are expected to grow in the years ahead.
Expected Forthcoming IPOs in Indonesia
In 2015 the IDX targets to list 32 Indonesian companies on the exchange. This target has been revised down from 35 due to the domestic economic context. Several companies that have announced their IPO plans are mentioned below.
• Puradelta Lestari, another Indonesian property developer and the industrial property unit of Singapore-listed Sinarmas Land Ltd, also revised its IPO plans after seeing the continuation of slowing economic growth in Q1-2015. Initially, the company planned to raise nearly USD $300 million in its IPO on the IDX by offering 10.8 billion shares to the public. However, it decided to offer 4.8 billion shares only at IDR 210 per share (hence aiming to raise about USD $77 million in the IPO) for business expansion.
• Merdeka Copper Gold, a mining unit of investment firm Saratoga Group, plans to raise up to IDR 1.8 trillion from its IPO planned for June 2015. Proceeds are to be used to inject capital into its subsidiary Bumi Suksesindo.
• Anabatic Technologies was founded in 2002 and is part of the Titan Group. The company focuses on providing integrated IT solutions for a variety of businesses (such as banking, telecommunications, and pharmaceuticals) and has four business divisions: system integration, value-added distribution, IT outsourcing, and business process outsourcing. With assets of more than IDR 1.5 trillion, the company may be among the five largest IT companies in Indonesia.
• Gelombang Seismic Indonesia is a company that supports oil and gas exploration companies through seismic and geophysical surveys (and specializing in providing 3D data). The company will float about 30 percent of its shares on the IDX. Roughly 70 percent of proceeds are to be used for capital expenditure (capex), the remainder for working capital.
• Indonesia Media Televisi, a subsidiary of Lippo Group, offers pay TV services (BIG TV).
• Binakarya Jaya Abadi is a property developer and affiliated with the Agung Sedayu Group.
• Mega Manunggal Property, founded in 2010, provides logistics facilities in Indonesia by leasing warehouse and office spaces, including general warehouses, built to suit warehouses, office buildings, and logistics warehouses.
• Garuda Metalindo, founded in 1982, is a manufacturer of bolts and nuts for the automotive industry. It currently owns two factories on a 40,000 m2 area in Tangerang and Kapuk (Java). Its clients include Astra Honda Motor, Kawasaki Motor, Krama Yudha Tiga Berlian Motor, and Suzuki Indomobil Motor.
• Vallianz Offshore Maritim, unit of Singapore-listed Vallianz Holding Ltd, is a shipping company that provides offshore support vessels and integrated marine solutions to the oil and gas industry. The company plans to sell a 15-20 percent stake in an IPO this year.
Last Update: 29 Mar 2021
IPOs on the Indonesia Stock Exchange up to May 2015
| Company | P: 29 Mar 2021 | P: 28 Mar 2021 | Gain/Loss | P/E ttm | Yield % | Gain/Loss YTD |
| Bank Yudha BhaktiBBYB | 498 | 494 | 0.81% | N/A | 0.00% | 40.68% |
| Mitra Keluarga KaryasehatMIKA | 2,720 | 2,750 | -1.09% | N/A | 0.00% | 4.62% |
| Mitra Energi PersadaKOPI | 565 | 565 | 0.00% | N/A | 0.00% | 13.00% |
| PP Properti Tbk.PPRO | 75 | 77 | -2.60% | N/A | 0.00% | -19.35% |
| Combined Total | 3,858 | 3,886 | -0.72% | 8.77% |
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available