By Raras Cahyafitri
Fri, September 13 2013 | 11:35 am
At least six companies are preparing to float their shares in the fourth quarter, a bourse executive says, despite the volatile stock market due to recent sell-offs. Indonesia Stock Exchange (IDX) director for corporate listing Hoesen said on Thursday the companies would use its first half financial reports, which would give them time until December to launch the initial public offerings (IPOs).
Hoesen revealed sea carrier PT Logindo Samudra Makmur, IT service provider PT Link Net and engineering and manufacturing firm PT Grand Kartech, were among the six companies. “Besides the six, some more companies have already sounded out their plans to enter the bourse,” he said, adding those companies were waiting for the completion of the audit process of their financial reports that usually took place in September.
A number of companies, including property developer PT Puradelta Lestari, lender PT Bank Index Selindo, sharia lender PT Bank Muamalat and herbal medicine maker PT Sido Muncul, have postponed their plans to go public after the stock exchange experienced a massive sell-off from late May following the US Federal Reserve plan to scale back its stimulus program.
The country’s poor economic figures are also making a contribution to falling Indonesian stocks, pushing the benchmark Jakarta Composite Index (JCI) to this year’s lowest level of 3,800 after losing up to 23 percent. Twenty five companies have entered the bourse year-to-date with most of their stock prices closed higher than prices offered during IPOs.
Among those performing poor in initial stock trading were commodity-based companies, such as crude palm oil (CPO) producers PT Multi Agro Gemilang Plantation and PT Austindo Nusantara Jaya, which officially floated their shares in the first half of the year. A gloomy outlook of CPO selling prices contributed to poor debut trading performances.
However, commodity-based companies planning to enter the bourse in the fourth quarter of the year might be luckier as stocks of commodity-based firms on the bourse have rebounded recently on the back of better manufacture figures from China that may boost demand for commodities.
Moreover, the weakening rupiah exchange rate against the US dollar has made investors seek dollar earners, particularly CPO exporters and miners, who are expected to enjoy higher profit margins. The IDX mining and agriculture indexes rose by 1.2 percent and 0.04 percent respectively on Thursday. PT Valbury Asia Securities president director Johanes Soetikno said the fourth quarter would be a good time for IPOs, consumers and commodity-based companies as well as those targeting foreign institutional investors, who would enjoy a lower rupiah exchange rate. “At the time of inflation, consumer-based companies have a reason to increase prices. Commodity stocks are already in a profit-taking level now after rebounding,” he said, underlining further profits these companies would enjoy later.