EY: Indonesia’s IPO Rank 7 in Global Stock Exchanges

Indonesia Stock Exchange (IDX) changed the auto rejection limitation starting today to curb the local stock market from coronavirus outbreak and oil price war - Photo by TheInsiderStories TheInsiderStories

JAKARTA (TheInsiderStories) – Ernst and Young (EY) reported on Tuesday (10/01), number of initial public offering (IPO) at Indonesia Stock Exchange (IDX) is ranked seventh among the global stock exchanges during  January – September 2019 (3Q) period. The local bourse aimed to bring 60 companies listing in this year.

The report said, IDX with 38 new listed companies, defeated the South Korean Stock Exchange (KRX and KOSDAQ) and the New York Stock Exchange (NYSE), which listed 36 and 32 company IPOs, respectively. The number of listed companies by IDX reached 4.9 percent of the total global IPO.

EY also rated, that the list of the companies that were registered was also increased by nine percent compared to the same period at the previous year. The total IPO of 12 global exchanges until the third quarter of 2019 was 768 listed companies.

The Hong Kong Stock Exchange (HKEX and GEM) maintained its position as the champion of the market with the most IPO activities, namely 97 issuers or equivalent to 12.6 percent of the total global IPO in year to date (YTD). Last year, Hong Kong successfully listed 205 new issuers.

In the list, Asia Pacific continued to dominate global IPO activities in 3Q of 2019, representing seven of the top 10 exchanges by volumes and five of the top 10 exchanges by proceeds.

EY’ Asia Pacific IPO Leader Ringo Choi, says the increasing of IPO activities in South East Asia was boosted by the rebound of activities on Southeast Asia exchanges during 3Q of 2019. Going forward, the China-US trade tensions may continue to raise uncertainty among investors in some parts of the region.

“The Asia-Pacific IPO market will soon recover if mega IPOs can complete their listings promptly during the last quarter of the year,” he said in a written statement.

From the acquisition of IPO funds, NASDAQ and NYSE were at the top position. NASDAQ listed total IPO funds of US$22.3 billion from 95 companies, while the NYSE followed with $22.2 billion in emissions from 32 companies.

EY Research noted, the total value of the global IPO during January – September 2019 has reached $114.1 billion. Last year the total global IPO emissions touched $205.6billion from 1,384 issuers.

Of that value, the HKEX managed to dominate the IPO with an emission value of $36.5 billion, or 17.7 percent of total global emissions. In terms of the acquisition of funds, IDX with $800 million funds of IPO was not included in the list of 12 global stock exchanges.

However, in Southeast Asia, IDX was able to outperform the Thailand and Malaysian stock exchanges which recorded proceed $600 million and $400 million, respectively. While the Singapore Stock Exchange remains its position as the largest of IPO emissions, worth $2.6 billion, although only from 11 new issuers.

Total IPO action in Southeast Asia penetrated 89 issuers with a value of $4.9 billion during the 3Q of 2019, increased by 13 percent compared to the same period last year.

As reported, president director of IDX Inarno Djajadi asserted that the regulator will continue to explore potential companies to raise funds through the stock market. Until 2022, IDX is optimistic that they will pursue 1,000 new listed companies.

He believed, with the current number of 649 issuers, the target can be pursued if the bourse is able to capture at least 100 issuers per year. Chairman of Financial Service Authority (FSA) Wimboh Santoso htargeting also targeting direct investment go to Indonesian financial market could reached Rp190 trillion (US$13.57 billion) in this year.

He assured that his office will continue to work hard to attract more companies go public, issue bonds and release other instrument in the local bourse. The ways to reach those target, Santoso revealed, that FSA, government and Bank Indonesia  will do are create conducive market, rise the ease of doing business, produce friendly policies and incentives.

US$1: Rp14,100

Written by Staff Editor, Email: theinsiderstories@gmail.com