The Indonesia Stock Exchange (BEI) has revealed that a significant number of “light house companies” are set to go public via an initial public offering (IPO) in the second half of this year. This anticipated listing is part of BEI’s IPO pipeline for 2024.
Light house companies are high-profile firms targeted by the exchange annually, characterized by a minimum market capitalization of Rp3 trillion (US$185 million) and a minimum free float realization of 15 percent.
BEI President Director Iman Rachman said that the exchange aims to list three such companies each year.
“God willing, there are several still in the pipeline, hopefully in the second semester,” he told reporters at the BEI building in Jakarta on Wednesday, July 10, 2024.
Iman also mentioned that there are approximately 30 companies currently in the IPO pipeline. With 32 companies having already listed shares this year, he remains optimistic about achieving the target of 62 new listings by the end of the year.
Regarding a special approach, Iman explained that the exchange has been proactive in assisting potential issuers. Despite each issuer having a securities underwriter, BEI provides additional support to guide the IPO process.
“We always visit regions or have special teams that offer free assistance to educate potential issuers,” he said.
On the other hand, Iman noted that there are currently no state-owned enterprises (SOEs) or their subsidiaries expected to go public this year.
This is likely due to a cautious approach amid the transition to President-Elect Prabowo Subianto’s administration. Nonetheless, he hopes to see SOE IPOs in 2025.
“We hope that next year there will be SOEs or their subsidiaries going public,” he said.
Earlier, BEI recorded several companies waiting in the IPO queue. As of July 5, 2024, 27 companies have listed shares on the exchange, raising a total of Rp4.06 trillion.
BEI Company Valuation Director, I Gede Nyoman Yetna, noted that 24 companies are ready to debut on the exchange. Most of these are mid-sized firms, primarily from the non-cyclical consumer sector.
However, no companies from the basic materials or infrastructure sectors are slated for IPOs in the near future.
“Currently, there are 24 companies in the BEI share listing pipeline,” Nyoman said on Wednesday, July 10, 2024.
