Indonesia Stocks Exchange (IDX)

JAKARTA (TheInsiderStories) – Two companies plans to conduct an initial public offering (IPO) in this October, Indonesia’ Central Securities Depository Services announced today (10/01). The two companies are a medical devices distributor, PT Itama Ranoraya Tbk (IDX: IRRA) and electric bicycle producer, PT Gaya Abadi Sempurna Tbk (GAS).

Director of Itama Ranoraya Heru Firdausi revealed the company need fresh funds to expand the network throughout Indonesia until 2020. The company set an IPO price Rp374 a share and releasing 400 million shares of the company shares.

The distributors targeting to get funds around Rp149.6 billion (US$10.60 million) from the IPO. Itama Ranoraya set the public offering period on Oct. 2 – 8, allotment date on Oct. 10, and will list its shares at the Indonesia Stock Exchange (IDX) on Oct. 15. PT BNI Sekuritas and PT Mirae Asset Sekuritas Indonesia helped the IPO process.

While, GAS decided the IPO price Rp115 per unit and targeting will reap fresh funds of Rp57.5 billion. The producer of brand Juara planned to release 500 million shares or 25 percent of the paid up capital in this IPO.

The manufacturer will complete the public offering period today. and to be listed on the stock exchange on Oct. 7. Investindo Nusantara Sekuritas has appointed as the guarantor for the IPO and joint lead underwriters PT Panca Global Sekuritas, PT Binaartha Sekuritas, and PT Corpus Sekuritas Indonesia.

Based on IDX data, to date, there are 38 companies have conducted IPO at the local bourse. Fresh funds from the IPO that were collected by the issuers worth of Rp11.1 trillion.

In 2018, as many as 58 companies has conducted IPO with total fund raising Rp16.42 trillion. This year, the regulator still optimistic 60 companies will conduct an IPO.

President Director of IDX Inarno Djajadi said, 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. This number is not only IPO, but include mutual funds exchange traded fund, Real Estate Investment Funds, and infrastructure investment funds in the form of collective investment contracts.

Recently, chairman of Financial Service Authority (FSA) Wimboh Santoso has stated, 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