JAKARTA. At the end of this year, the Indonesia Stock Exchange (IDX) will only book the initial public offering (IPO) of three new issuers. Therefore, there will be only 17 companies listed on IDX, or lower than 20 companies targeted by the IDX.

Director of Corporate Assessment of IDX Samsul Hidayat said that the three companies are PT Prodia Widyahusada Tbk, PT Forza Land Indonesia Tbk, and PT Bintang Oto Global Tbk. "Three companies are already in the pipeline. There will be likely 17 companies (listed) by the end of this year," said Samsul, Thursday (1/12).

As information, along this year, 14 new issuers have issued their shares at the stock market. The most recent is PT Paramita Bangun Sarana Tbk (PBSA), which was just listed in September. PBSA has released 300 million shares or equal to 20% of issued and paid up capitals. The price of PBSA share during the IPO is Rp 1,200 per share.

Recently, PT Prodia Widyahusada Tbk is conducting public offering. Prodia released their shares with the price of Rp 6,500 per share. The clinic laboratory company will be listed on IDX on 7 December.

Prodia released 187.5 million shares or equal to 20% of paid up capital. “It is expected to raise Rp 1.22 trillion funds,” said President Director of Prodia Dewi Muliaty through a release. PT Citigrup Securities Indonesia, PT Credit Suisse Securities Indonesia and PT Indo Premier Securities will act as Prodia’s underwriter during the IPO.

Samsul is optimistic that the IPO will be more vibrant in the next year. The better economic condition and the tax amnesty will enhance the absorption of stock exchange instrument.

According to Samsul, some underwriters said that there will be 10 candidates of issuers, which are interested to list on IDX in the next year.

Corporate Finance Director of PT Ciptadana Capital Oskar Harianto said that his company is handling the IPO of several companies. To date, three companies are already in the pipeline. Those are the infrastructure and distribution companies. “Some of them use the financial statements of either September or December,” Oskar said.

Based on the prediction on the economic condition in the next year, Oskar is optimistic that the IPO market will be busy. Aside of the IPO, he is optimistic that the tax amnesty will enhance the capital inflows to the stock market.

Some subsidiaries of state owned enterprises (SOEs) are considered as the solid issuers. Information is circulating that the subsidiary of PT Adhi Karya Tbk (ADHI), namely PT Adhi Perkasa Properti (APP) targetes to raise Rp 1.5 trillion-Rp 2 trillion funds by issuing 30%-35% of its shares through IPO.

Meanwhile, the subsidiary of PT Hutama Karya, namely PT HK Realtindo will release 30% of its shares during the IPO. The two subsidiaries of PT Wijaya Karya Tbk (WIKA), namely PT Wika Realty dan PT Wika Gedung each will release 30%-35% of their shares through IPO.

The subsidiary of PT Pelabuhan Indonesia III, namely PT Berlian Jasa Terminal Indonesia will release its shares that amount to 20%-30% of the paid up capital. Meanwhile, Pelindo II is also planning to conduct IPO for its three subsidiaries, namely PT Pelabuhan Tanjung Priok (PTP), PT Indonesia Kendaraan Terminal (IKT), and PT Jasa Armada Indonesia (JAI). Pelindo II targets to raise Rp 4 triliun funds from the IPO.

Head of Research at MNC Sekuritas Edwin Sebayang said that the IPO in 2017 will depend on three factors, namely capital inflow, liquidity of institutional investors, and the funds under management. Edwin suggest that the IPO is likely to be busy in 2017.

The issuers of consumer goods and infrastructure sectors will still be prospective in the next year so that the IPO will be attractive for the investors.

(Muhammad Farid/Translator)

Editor: Barratut Taqiyyah Rafie