JELI and BACH Shares Dumped by Investors: What's Behind the Sell-Off?

The euphoria surrounding initial public offerings (IPOs) on the Indonesia Stock Exchange (IDX) began to fade on Friday (10/7/2026) as two early July debutants, PT Niramas Utama Tbk (JELI) and PT Bach Multi Global Tbk (BACH), came under heavy selling pressure. Shares of JELI, the producer of the INACO branded food products, were the most pressured, plunging 14.81% to Rp1,495 and hitting the lower auto-rejection limit. Meanwhile, shares of BACH, a generator set and telecommunications infrastructure company affiliated with the Djarum Group, slumped nearly 10% to Rp500. This contrasted with the performance of other newly listed firms, such as Raffi Ahmad’s PT RANS Entertainment Indonesia Tbk, which surged by the upper auto-rejection limit on its debut, and PT Prodia Diagnostic Line Tbk, which also ranked among the top gainers. The Jakarta Composite Index (IHSG) itself moved calmly in positive territory. JELI officially listed on 7 July 2026 with an IPO price of Rp900 per share, releasing 266 million shares, or 21.01% of its capital, to raise Rp239.4 billion. A key concern is its valuation, which has raced ahead of its earnings performance. Throughout 2025, JELI only booked a net profit of Rp39.0 billion. Although this represents a 235.5% surge from the previous year’s Rp11.6 billion, the percentage jump stems from a very small base. At its IPO price, the price-to-earnings ratio was already around 31-39 times, far above the food and beverage sector average of 12-18 times. The premium valuation is made riskier by the direction of its core business; instead of growing, JELI’s revenue has contracted for three consecutive years, from Rp838.94 billion in 2023 to Rp753.05 billion in 2025. This indicates that the profit surge was driven by efficiency gains and margin improvements rather than volume growth, a source of growth that has natural limits. Adding to the concerns, the company’s operating cash flow collapsed by around 83% in 2025 due to a spike in trade receivables from credit sales near year-end, raising a classic red flag about the quality of its earnings. Furthermore, the company has never paid a dividend in over three decades of operation, making its post-IPO dividend promise yet to be proven. BACH, which listed on 8 July 2026 at Rp442 per share, also faced warning signals. Broker summary data indicated a significant net sell by one broker amounting to approximately Rp117.4 billion, hinting at a distribution phase. Fundamentally, the company’s cash ratio dropped to just 0.02 times in 2025, indicating very tight liquidity, especially as part of the IPO proceeds is allocated for working capital to purchase generators. The company also faces heavy dependency on affiliated parties within the Djarum Group ecosystem for its telecommunications line, making its performance vulnerable to internal group decisions rather than pure market dynamics. Operationally, BACH is exposed to supply chain risks due to its reliance on foreign principals for main components, making it susceptible to exchange rate fluctuations and global supply disruptions.