Jakarta Globe | Insight

Five Biggest Public Offerings of 2017

Jakarta. A total of 36 companies went public on the Indonesia Stock Exchange, or IDX, in 2017, a mixed-year for newly listed companies.

While the number of public offerings exceeded the exchange’s target of 35 listings and more than doubled 2016’s 14 listings, the newly public companies only managed to raise more than Rp 9.2 trillion ($679 million), dropping 24 percent from Rp 12.07 trillion a year earlier.

Some large corporations that had initially planned on going public either revised or lowered their target offerings, which analysts say may be due to a weak appetite from foreign investors.

A small number of listings last year were dominated by medium- and small-size enterprises, along with technology startups.

Kioson Komersial Indonesia was the country’s first startup to go public last year, paving the way for other Indonesian technology startups to pursue IPOs. The company raised Rp 45 billion from the issuance and its shares have risen more than eight-fold since.

In terms of gains, integrated offshore shipping company Pelayaran Tamarin Samudera was recorded as the highest gainer throughout last year among the newly-listed 36 companies. Pelayaran’s share price has jumped more than 13 times since its offering last year.

On the other hand, Armidian Karyatama, a subsidiary of publicly-listed property developer Hanson International, lost half of its stock value to Rp 202 per share from its IPO price of Rp 404.

Below is a list of the top five biggest IPOs of 2017:

GMF Aero Asia at Rp 1.27 trillion

The much-anticipated IPO of the Garuda Maintenance Facility Aero Asia, known as GMF Aero Asia, the airplane maintenance arm of flag carrier Garuda Indonesia, issued 10.9 billion new shares, equivalent to 10 percent of the company’s equity. Shares sold at Rp 400 apiece in the IPO this September.

Although the company cut its IPO size by more than half of its initial target, all the while delaying their schedule, GMF remains the biggest IPO of 2017.

PP Presisi at Rp 1 trillion

As one of the subsidiaries of state-controlled PP, concrete producer PP Presisi was the second largest IPO last year. PP Presisi went public in October, offering 4.23 billion new shares, equivalent to 35 percent of the company’s enlarged capital, at a price of Rp 430 each.

Wika Gedung at Rp 832.8 billion

Wika Gedung, a subsidiary of state-controlled construction company Wijaya Karya, offered 2.87 billion shares, or 30 percent of its equity, at Rp 290 each in November.

Kirana Megatara at Rp 527.8 billion

Kirana Megatara, a Jakarta-based crumb rubber producer, undertook its IPO in June, issuing 1.15 billion new shares — equivalent to 15 percent of its total equity — at Rp 458 each. Kirana was the 12th company to go public last year.

Kirana sold the majority of its products overseas to clients including Goodyear, Hankook and Bridgestone.

Totalindo Eka Persada at Rp 516 billion

Construction company Totalindo Eka Persada was one of the first companies to go public last year.

Totalindo, which has been involved in several high-profile construction projects, such as the development of Mall Taman Anggrek shopping mall, held its IPO in June, selling 1.6 billion new shares, equivalent to 24.99 percent of its equity, at Rp 310 apiece.