JAKARTA (TheInsiderStories) — Its still a good moment for Initial Public Offering (IPO) in Indonesia for the first semester (1H) while there could be more challenge next, analysts said. During the second quarter, eight companies have been listed in Indonesia Stock Exchange (IDX) in the second quarter (2Q) with total of 15 IPOs.
The stocks watcher said that there are still more than 20 companies in their pipeline.
PT Communication Cable System Indonesia Tbk (IDX: CCSI) listed Tuesday (06/18), issuing 20 percent shares. It gained Rp50 billion (US$3.50 million) funding from the market. The optical fiber cable producer shares jumped 30.4 percent from Rp200 in the market opening.
Indonesia’ first listed soccer team PT Bali Bintang Sejahtera Tbk (IDX: BOLA) shares rocketed by 69.1 percent and hit by IDX’ auto-reject, on its first day of trade. But the condition is different for PT Hotel Fitra International Tbk (IDX: FITT) shares that declined after hiking on the days of its early listed.
Ekuator Swarna Sekuritas Head of Research David Sutyanto mentioned that IPO in the local market is still profitable. But he reminded that it has a special characterization in the price-making for the initial 10 days and prone to auto-reject. Even so, the sector pioneer like Bali United usually hikes well due to market curiosity.
Other than that, PT Jasnita Telekomindo Tbk (IDX: JAST), PT Bliss Properti Indonesia Tbk (IDX: POSA), PT Menteng Heritage Realty Tbk (IDX: HRME), PT Capri Nusa Satu Properti Tbk (IDX: CPRI), and PT Meta Epsi Tbk (IDX: MTPS) were some of the companies that have hit Stock Exchange’s floor in the second quarter.
“People are quite optimistic with the IPO companies,” said Indosurya Sekuritas Head of Research William Surya Wijaya.
He explained that the in 1H IPO is quite good due to people’s optimism for investing. But there will be more challenge in the second semester, because people will start to realize the real condition of the market.
“I think it (IPO) is more to speculation. But for investing in a long-term, we must check the company (performance),” Wijaya stated.
Furthermore, some companies are queueing to be listed in July, such as packaging industry company PT Satyamitra Kemas Lestari, manufacture and fabrication company PT Arkha Jayanti Persada, artificial staple fiber and non-woven industry company PT Inocycle Technology Group, property PT Bumi Sakti Pertiwi, and PT MNC Vision Networks.
Hary Tanoesoedibjo’ company targets achieving up to Rp856 billion fresh funding through the IPO. It will release 2.5 billion new shares or 10 percent of its issued and fully paid capital with the price tagged at Rp231 – Rp243 per share.
Another media company, PT Net Visi Media Tbk is also in this year’ IDX pipeline. But it is still unclear how much funding eyed. Sutyanto said, the media sector is no bad.
He rated that finance and consumer goods sectors are still the market-driven. Besides those sectors, Wijaya also recommended telecommunication sector.
Wijaya is optimistic for Jakarta Composite Index to be at 7,000 or reach its all-time high, this year seeing the foreign inflow. Meanwhile, Sutyanto predicted the 2019’ index will close at around 6,500.
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