Indonesian Capital Market Sees Two Issuers Raise Rp517 Billion via IPOs

The Indonesia Stock Exchange (IDX) officially ushered two companies to conduct initial public offerings (IPOs) on the Indonesian capital market today. The two companies are PT Bach Multi Global Tbk (BACH), which successfully raised Rp271.83 billion, and PT Esa Medika Mandiri Tbk (EMMI), which obtained Rp245.74 billion, bringing the total funds raised from both to Rp517.57 billion.

IDX Director of Corporate Assessment Saidu Solihin stated at the IDX Main Hall in Jakarta on Wednesday that through the capital market, both companies have the opportunity to strengthen their business capacity via broader funding access while implementing good corporate governance. “Hopefully this step will be the beginning of a new journey for both companies to expand their impact, strengthen competitiveness, and grow sustainably with the Indonesian capital market,” said Saidu.

In its IPO, BACH offered 615 million new shares, equivalent to 15.06 percent of the issued and fully paid-up capital, at an offering price of Rp442 per share, thus successfully raising Rp271.83 billion. High investor interest was reflected in BACH’s shares hitting the upper auto-rejection limit, rising 24.43 percent to Rp550 from the offering price of Rp442 per share.

BACH President Director Budi Kurniawan revealed that approximately 70 percent of the IPO proceeds will be allocated as working capital, specifically for the purchase of generators to meet sales and rental demand. “Meanwhile, the remaining 30 percent will be used to repay part of the company’s bank loans, thereby strengthening the capital structure and reducing the company’s leverage level,” said Budi.

Meanwhile, in its IPO, EMMI offered 522.85 million new shares, representing 30 percent of the issued and fully paid-up capital, at a price of Rp470 per share, thus successfully raising Rp245.74 billion. EMMI shares rose 20.21 percent to Rp565 per share from the offering price of Rp470 per share in trading as of 10:59 WIB.

EMMI President Director Florian Chris Widjaja disclosed that the IPO proceeds will be used to strengthen the company’s capital structure, expand production facilities, and support the company’s working capital needs. “In addition, a portion of the funds will be used to repay part of the bank loans, for the construction of a new factory building in Cikupa, and the remainder for inventory purchases and working capital needs related to projects and procurement of medical devices,” said Florian.