ID/Elizabeth Gloria Berahmana & Hari Gunarto
At least 12 companies are expected to conduct initial public offerings in the second half of the year, bringing the total number of newly listed companies to 25 this year, matching the target of the Indonesia Stock Exchange.
Companies set to debut later this year include palm oil producer Citra Borneo Indah, state-controlled cement maker Semen Baturaja and state-controlled construction company Waskita Karya. The trio are expected raise a combined total of almost Rp 3 trillion ($318 million) from the offerings.
Citra plans to raise Rp 1 trillion from the sale of a 20 percent stake and Baturaja to raise Rp 1 trillion from selling 35 percent, while Waskita is expected to raise Rp 900 billion from its listing.
Indonesian companies are capitalizing on a relatively strong appetite among investors in the local market. Other state enterprises like PLN Batam, a local unit of utility company Perusahaan Listrik Negara, Aerowisata Catering Services, a subsidiary of national airline Garuda Indonesia, and Drilling Services Indonesia, a unit of Pertamina, are also planning IPOs.
The remaining six planned floats are taxi operator Express Transindo Utama, with target of raising Rp 800 billion, land transportation company Cipaganti Citra Graha (Rp 750 billion), palm oil outfit Provident Agro (Rp 400 billion), football club Persib Bandung Bermartabat (Rp 200 billion), telco tower construction company Inti Bangun Persada (Rp 192 billion) and shipping firm Pelayaran Nelly Dwi Putri.
Octavianus Marbun, an analyst with Waterfront Securities, said the state of the global market would have an impact on the financial market, although several sectors including consumer goods, infrastructure and property would be largely immune from global shocks. “Sectors with strong domestic focuses are still on track for IPOs,” he said.
Octavianus said foreign investors were still pursuing Indonesian shares and bonds because that offered good returns.
Jeffrosenberg Tan, a fund manager at Sinarmas Asset Management, said he expected the impact of global economic slowdown to strengthen in the second half. “Domestic-based sectors, however, will be more isolated than sector that rely on exports,” he said.
Hoesen, a director for valuation at the Indonesian Stock Exchange (IDX), said the second half was conducive for IPOs. “I’m optimistic that the target of 25 companies is still reachable,” he said.
In the first half, 13 companies listed their shares on the IDX, raising a total of Rp 5.79 trillion. During the first day of trading, these 13 companies booked an average gain of 27 percent. Shares in property companies Gading Development and Bekasi Fajar Industrial Estate each rose nearly 70 percent in their first day of trading.