Three companies postpone IPO this year: Mandiri Sekuritas

Three companies postpone IPO this year: Mandiri Sekuritas

President Director of Mandiri Sekuritas Silvano Rumantir (right) (ANTARA/Muhammad Adimaja)

Jakarta  (ANTARA News) - Mandiri Sekuritas said that there were three companies that had postponed plans to conduct the initial public offering (IPO) in 2018.

"There are two or three companies that will postpone the IPO, which was intended for next year," said President Director of Mandiri Sekuritas Silvano Rumantir, here on Wednesday.

He said that one company that had postponed the IPO was engaged in the production and distribution of paint and pipe products.

Previously, the Indonesia Stock Exchange (BEI) said that there were 17 companies planning to implement the IPO in 2018.

"There are 17 companies included in the IPO `pipeline` in BEI," said Director of IDX Corporate Valuation I Gede Nyoman Yetna.

He said the companies that would offer IPO included those in the property, trade, services, transportation, tourism, as well as oil and gas sectors.

BEI last Tuesday listed two more companies, PT Pratama Abadi Nusa Industri Tbk (PANI) and PT Arkadia Digital Media Tbk (DIGI).

Corporate Valuation Director of BEI I Gede Nyoman Yetna said the two companies are expected to adopt good corporate governance (GCG) to win market appreciation.

"The adoption of GCG will create and win public confidence," Nyoman Yetna said.

With the adoption of GCG, the companies would be able to meet challenges and offer greater optimism to their shareholders, he added.

Chief Executive of Arkadia Digital Media Tbk William Martaputra said the listing was a strategic corporate action for his company in expanding the media business.

The company floated and sold 150 million of its paid shares to the public through the IPO mechanism at a price of Rp200 per share or a total of Rp30 billion.

"The fresh funds would be used for the procurement of infrastructure and hardware and expansion of the platform," Martaputra said.

He said 38 percent of the funds would be for the procurement of hardware, 60 percent for the software and the rest for working capital.

President Director of Pratama Abadi Nusa Industri Prilli Soetantyo said his company earned Rp16.2 billion from the sale of shares and the funds would be used for business expansion.

"The plan is for working capital. We are producers of canned food," Prilli said.

Pratama operates in the frozen seafood processing industry and food canning for exports. The company exports its food products to the United States and European countries.

In the initial trade, the shares shot up 70 percent in price to Rp340 each from the IPO price of Rp200; and the shares of PANI surged 69.44 percent to Rp183 per share from the IPO price of Rp108 each.

Reporting by Zubi Mahrofi
Editing by Andi Abdussalam, Bustanuddin