Indonesian capital market witnessed yet another disappointing year in 2016, with an overall listing activity of a mere 14 IPO deals raising approximately $906.8 million via the capital markets route.
This is significantly lower than the target that Indonesia Stock Exchange PT Bursa Efek Indonesia (BEI) had set for itself of getting 35 new companies to launch initial public offering (IPO) in 2016. It is also the second consecutive year that Indonesian stock exchange has failed to meet its target.
In 2015, the country had failed to meet its initial target of 35 listings, as well as its revised target of 22 initial public offerings, and has ended the year with 13 listings. barely 20 companies raising about a $1 billion via the capital markets route.
While the 2016 numbers are marginally better than last year (13 listings, $765 million), Indonesia has failed to reach the mark set in 2013 where it saw $3.68 billion of capital raised from 30 IPOs.
In 2015, Indonesia witnessed offerings from Bank Artos Indonesia, Mitra Pemuda, Mahaka Radio Integra, Bank Ganesha, and Cikarang Listrindo. There were also offerings from Sillo Maritime Perdana, Duta Inti Daya, Graha Andrasenta Propertindo, Capital Financial Indonesia, and Protech Mitra Perkasa, among others. Materials sector was the largest contributor to capital raised (44 per cent), followed by utilities sector (30 per cent).
