JAKARTA (TheInsiderStories) - Financial Services Agency (OJK) stated that three companies are ready to launch initial public offering (IPO) in first quarter of 2016 with total value Rp264 billion ($19.27 million). At the same period, one regional lender PT Bank Pembangunan Daerah North Sulawesi will issue bond worth Rp500 billion.
Deputy Commissioner of OJK for the Capital Market Supervisory M. Noor Rachman said construction firm PT Mitra Pemuda plans to raise Rp20 billion from the IPO. Mitra Pemuda will offer 45 percent of the company shares to the public, aided by Lautandhana Securindo as the underwriter.
Two other companies that launch IPO in the first quarter will be small lender PT Bank Artos, which is planning to seek funds worth Rp24 billion as well as property developer PT Graha Andrasentra Propertindo aiming to raise Rp220 billion from the IPO.
OJK’s Chairman Muliaman Hadad added to boost the number of companies to go public in 2016, the regulator is in talks with the Indonesian Chamber of Commerce and Industry (KADIN) and banks to invite their members and customers to raise funds through capital market.
“We are in talks with KADIN to identify mid-size companies that can launch IPO. We are also identifying clients of banks that have the potentiality to launch IPO. I think these two sources will help increase the number of issuers,” Muliaman said.
According to Noor Rachman, OJK has issued 83 effective statements for the IPOs, rights issues and bonds with a total value of Rp 115.94 trillion, comprising of 15 IPOs worth Rp11.27 trillion, 83 rights issues worth Rp42.25 trillion, Rp34.74 trillion for ongoing rights issue, corporate bonds Rp2.80 trillion and ongoing bonds issuance Rp24.88 trillion, government bonds Rp135.6 trillion and US$ 500 million.
Previously, Director of Indonesia Stock Exchange (IDX) Samsul Hidayat stated the agency is targeting 35 companies will launch IPO in 2016, up from 20 firms in 2015.
He said in addition to those three companies, the other companies that would launch IPO in the first quarter 2016 will be power producer PT Cikarang Listrindo, radio broadcasting PT Mahaka Radio Integra and other small lender PT Bank Ganesha.
Cikarang Listrindo is targeting to raise up to $500 million from offering 22 percent of enlarged capital. Mahaka Radio Integra aims to raise Rp188.50 billion from offering 171.37 million shares, which is helped by PT Trimegah Securities Tbk (IDX: TRIM) as the underwriter.
The other companies could list their shares in 2016 are rice producer PT Buyung Poetra Sembada, property company PT Summarecon Property and PT Ciputra Property.
Meanwhile, senior deputy governor of Bank Indonesia Mirza Adityaswara sees Indonesia financial market still has the capability to attract capital inflows. The influence of global factors such as the Federal Reserves policy and pressure from China are expected to be muted in 2016 and could give positive impact on domestic market.
Indonesia economy indicators, he added, are quite good and the volatility is easing. BI, said Mirza, estimates the inflation to be in the range of between 4.4 to 4.7 percent in 2016 from this year’s projected inflation at 3.15 percent.
Current account deficit is expected to be slower to around 2 percent in 2015 and slight increase to around 2.7 percent in 2016 amid improved economic activity that encourages the rise of capital goods imports.
“Hopefully, this perception brings a positive impact to our financial markets,” he said.
The Jakarta Composite Index stood at 4,593 on the last day of trading in 2015. This led to a 12 percent loss in the index, with market capitalization eroding by 7 percent to Rp 4,873 trillion as of Dec. 30.
Vice President Jusuf Kalla attempted to assure investors that the growth is underway — with a target to reach 5.3 percent next year — backed by quicker execution of government spending. He added that businesses in the cement, construction and steel industry are expected to enjoy the benefits from the government’s planned development spending earlier next year. (*)