JAKARTA (TheInsiderStories) – Local start-up, PT Digital Mediatama Maxima (Digimax) will conduct an initial public offering (IPO) at the Indonesia Stock Exchange (IDX) this year, said the underwriter today (09/18). The company offers 25 percent shares to the public with a target fund up to Rp600 billion or US$42.25 million.
According to PT Kresna Sekuritas’ president director Octavianus Budiyanto, as the underwriter for the IPO, Digimax is a digital company that focuses on cloud advertising and is still affiliated with the company. Kresna Sekuritas will collaborate with Macquaire Singapore to arrange the listing plan.
Digimax is an indirect subsidiary of Kresna Sekuritas and have branches in 4,000 locations in 24 cities around the country. The technology firm included in 22 companies in the Indonesia Stock Exchange (IDX) pipelines.
The bourse had announced 12 companies prepared to go IPO until the end of the year namely PT Asia Sejahtera Mina, PT Singaraja Putra, PT Sinergi Inti Plastindo, PT Ginting Jaya Energi , PT Aneka Mineral Indonesia, PT Palma Serasih, PT Mulia Boga Raya, PT Prima Globalindo Logistik, PT Cisadane Sawit Raya, PT Indo Bintang Mandiri, PT Repower Asia Indonesia, and PT SAM Indonesia.
Management of IDX stated that the local bourse will keep attracting more start-up companies to become a listed company. The bourse has provided relaxation, such as changes part of the IPO rules.
I Gede Nyoman Yetna Setya, IDX’ director said the regulator had required the company to have a Net Tangible Assets (NTA) in a certain size to become an issuer. This regulation was often complained because not all companies had the tangible assets such as technology companies.
Now, IDX does not require the prospective issuers to meet the NTA requirements but must have revenues. If it could not penetrate the requirements regarding revenue, the bourse will consider the market capitalization of the company.
Previously, information and communications technology minister Rudiantara hoped Indonesian Financial Services Authority (FSA) and IDX will issue regulations for start-up companies holding or unicorn to be able conduct an IPO in the local stock exchange.
Therefore, he hoped all the ecosystems associated with the capital market, whether on the part of the community or investors, fund managers, and stakeholders in the Indonesian capital market should share the same approaches.
He said that the major obstacle for unicorns to conduct an IPO is stock price valuation. Thus the government and the authority will carry out an assessment of unicorn companies.
“Sooner or later, the initial investors in these unicorns would have to find ways to exit from these unicorns (to realize gains),” he adds.
The seriousness of small and medium enterprises (SMEs) and start-ups to take the floor on the stock exchange is increasingly attracting the attention of investors. This was proven during the initial listing, the share price of a number of these startup issuers reached the upper limit of auto reject.
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