JSX forecasts 30 IPOs next year<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
The Jakarta Stock Exchange (JSX) management estimates that 30
\ncompanies will sell their shares to the public next year by
\ninitial public offering (IPO) and become listed on the bourse.<\/p>\n
JSX president director Erry Firmansyah said the projection
\nassumed that the economic growth rate would reach between 5
\npercent and 6 percent next year, up from the estimated 4 percent
\nto 5 percent for this year.<\/p>\n
\"The economy will be relatively better next year. That is why
\nwe expect more companies to go for an IPO to seek financing,\"
\nErry said on Thursday after an extraordinary shareholders
\nmeeting.<\/p>\n
As for this year, he was still optimistic that 20 firms would
\nlist their shares on the bourse.<\/p>\n
The JSX also estimates that 45 publicly listed companies will
\nlaunch a rights issue to raise cash, and issue bonus shares as
\nwell.<\/p>\n
Erry said that during the meeting, shareholders agreed to set
\nup several economic indicators as a guideline for next year's
\nbusiness plan.<\/p>\n
The inflation rate is projected at between 5 percent and 7
\npercent next year, Bank Indonesia's benchmark interest rate at 6
\npercent and the U.S. Federal Reserve key interest rate at between
\n1 percent and 2 percent.<\/p>\n
The JSX has made a modest estimation that daily stock
\ntransactions will reach an average Rp 750 billion (US$83 million)
\nin 2005, unchanged from this year because of a possible
\nfluctuation in trading.<\/p>\n
According to indicators, the JSX expects operational revenue
\nof Rp 100 billion, up from the Rp 78.1 billion estimated for this
\nyear. The bourse's pre-tax profit is projected at Rp 7.13
\nbillion, lower than this year's target of Rp 18.9 billion upon
\nhigher investment spending.<\/p>\n
The JSX plans to spend Rp 48.5 billion in investment next
\nyear, up by 223 percent from this year.<\/p>\n
The huge investment aims to enhance the bourse's trading
\ninfrastructure, provide new facilities to support the launch of a
\nnew product called American Warrant and to develop remote trading
\nfacilities.<\/p>\n
Erry said the JSX would also provide facilities for bond
\ntrading, like those available on the Surabaya Stock Exchange
\n(SSX), in anticipation of next year's capital market
\ndemutualization policy. One of the requirements of the policy is
\nto combine the JSX and SSX.<\/p>\n
At present, the SSX holds a license to facilitate bond
\ntrading, while the JSX manages stock trading.<\/p>\n
The government plans to demutualize the country's capital
\nmarket next year, in an effort to smooth the decision-making
\nprocess between the two bourses' managements, to revitalize the
\ninternal divisions of the bourses and to boost communication with
\ninvestors and listed companies.<\/p>\n
Demutualization is the transferal of the JSX's control to
\nindividuals or institutions which no direct relations with
\nactivity in the bourse.<\/p>\n
The current shareholders of the JSX are securities firms.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jsx-forecasts-30-ipos-next-year-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }