JAKARTA. Indonesia Sotck Exchange (IDX) is struggling to meet the target of 35 new issuers this year. Until now, the series of initial public offerings (IPOs) just attracted 10 issuers and raised Rp 4.44 billion of stock emission.
Director of Corporate Assessment of IDX Samsul Hidayat said that IDX performance has improved compared to the last year and companies are actually still interested to earn capital through stock exchange. However, investors apparently prefer bonds. Samsul said that IDX may revise down the target of new issuers number from 35 to 25.
Samsul predicted that the stock exchange will earn at least IDR10 trillion to IDR12 trillion through IPO. In 2015, IPO attracted 18 issuers and raised Rp 11.31 trillion of stock emission.
Currently, Financial Services Authority (OJK) are reviewing effective permit for four new issuer candidates namely PT Anugerah Berkah Madani, PT Waskita Beton Precast, PT Paramita Bangun Sarana dan PT Aneka Gas Industri. Meanwhile, pre-effective permit for two issuer candidates.
Head of Research Deparment of Bahana Securities Harry Su said that IPOs in 2016 are less attractive following the slow economic growth. Aside of the national economy factor, the target of 35 new issuers was too high.
Head of Reasearch Department of Recapital Securities Andrewa Argado said that actually IPO is merely an alternative funding option. Amid the trend of low interest rate, many companies prefer to earn capital from bond and money markets. Recently, many companies, mainly export-based companies prefer to hold capital and expansion expenditures. Some issuers also take wait and see stance to the latest domestic economy condition. (Translator: Muhammad Farid)
Editor: Sanny Cicilia