29 February 2018

Jakarta - Two members of the Indonesian Employers Association (Apindo) will conduct initial public offerings (IPOs) of shares in 2018. These corporations are included in the 100 Apindo members that are considered ready to IPO and become issuers on the Indonesia Stock Exchange (IDX).

Chairman of Apindo, Hariyadi Sukamdani, stated that the association's members are around 14,000 companies. Of these, there are 500 companies that are adequate to carry out an IPO. However, only 100 Apindo members have the opportunity to conduct an initial public offering.

“This is based on aspects of administrative readiness and the company's interest in becoming an issuer. However, only two companies will IPO this year. Mandiri Group which is engaged in the coal business, and Mahkota Group which is a palm oil company,” Hariyadi said, in Jakarta, Tuesday (20/2).

Hariyadi explained, specifically for Mandiri Group, the company has the opportunity to carry out an IPO of shares in June 2018. Although it has a similar name, this coal company has no connection with PT Bank Mandiri Tbk (BMRI). According to him, the plan of the two Apindo members to IPO is a good step. This is because market conditions are quite conducive, and the composite stock price index (JCI) has the opportunity to continue to increase.

“The two Apindo members who intend to IPO each have assets above IDR 1 trillion. Apindo always strives to support increased funding from the capital market,” he explained.

Responding to the plan to add Apindo members who IPO, Chairman of the Indonesian Issuers Association (AEI), Franciscus Welirang, stated that he appreciated the decision. The reason is, Apindo members who are issuers on the IDX are also members of AEI.

“With the addition of Apindo members who IPO, it means we will get additional AEI members. Therefore, we appreciate it, and AEI also strives to continue to encourage increased investment through the capital market,” he said.

Then when confirmed, the Director of Corporate Valuation of the Indonesia Stock Exchange (IDX), Samsul Hidayat stated that his party had not received an official IPO plan document from Mandiri Group or Mahkota Group. However, he admitted, the Mahkota Group based in Medan, North Sumatra had already discussed with the IDX regarding the IPO process.

For 2018, the IDX is targeting the addition of 35 new issuers. Whereas last year, the IDX received the addition of issuers up to 37 companies. Samsul once emphasized that he is optimistic that around 10-12 new corporations will complete the IPO, and have been listed on the IDX in the first semester of 2018.

​From January 1 to February 20, 2018, there were two new issuers, namely PT LCK Global Kedaton Tbk (LCKM), and PT Borneo Olah Sarana Sukses Tbk (BOSS). Then other companies that are processing IPO bookbuilding, including PT Sky Energy Indonesia.

Source :  http://www.beritasatu.com/ekonomi/479561-dua-anggota-apindo-siap-ipo-tahun-ini.html