JAKARTA (TheInsiderStories) – The Indonesia Stock Exchange (IDX) plans to amend the initial public offering (IPO) regulation to help startup enter the stock market, said the director. The new policy also taken to adapt the global business development.
“The draft regulation is still in the rule-making-rule stage. We hope the regulation will be completed soon,” said the director, I Gede Nyoman Yetna, in an official statement, quoted on Monday (01/11).
He adds, in the draft, IDX prepares several alternative listing requirements to accommodates various company characteristics but not limited to unicorn-class startups in Indonesia. Throughout 2020, the IDX has been in discussions with founders and management of tech firms and investors such as private equity and he is optimistic they can conduct an IPO soon.
Yetna also reported, until Jan. 4, 28 companies ready to go IPO in this year. The companies consist of six companies fro trade, services and investment sectors. Two companies from the property, real estate and building construction sectors, and two companies from various industrial sectors.
Furthermore, there were two companies from the financial sector, two companies from the infrastructure, utilities and transportation sectors, one company from the agricultural sector, and one company from the mining sector. While, 12 companies are in the process of evaluating. One of the candidates is the startups under venture capital company, PT MDI Ventures.
The unit of PT Telkom Indonesia Tbk (IDX: TLKM), is preparing four startup companies in its investment portfolio to go IPO starting this year. Managing partner of MDI Ventures, Kenneth Li, said that the closest IPO plan will be carried out in the first quarter of 2021 with a targets up to Rp150 billion (US$10.71 million).
During 2020, total fund raising through public offerings in IDX has reached Rp118.7 trillion and there are 51 companies that have conducted an IPO at the local bourse. To date there are 713 companies that have listed their shares on the stock market.
President director of IDX, Inarno targeting, in this year, around 30 enter the capital market. This amount consists of listing, new corporate bonds, and other securities including Exchange Traded Funds, Real Estate Investment Funds, and Asset Backed Securities.
While, chairman of Financial Services Authority (FSA), Wimboh Santoso, said from the supply side, corporate enthusiasm to raise funds through public offerings was still strong during the pandemic.
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