OJK Hunts for IPO Candidates, Here's How

The Financial Services Authority (Okan) continues to hunt for potential companies to list on the Indonesia Stock Exchange (IDX) through initial public offerings (IPOs).

Hasan Fawzi, the OJK Executive Head of Capital Market Oversight, Derivatives, and Carbon Exchange, stated that the OJK is actively undertaking various efforts to stimulate interest in IPOs. These efforts include socialisation and education for potential issuers across various regions, sectors, and business scales, including medium-sized companies with high growth potential.

“Through the joint efforts of the OJK and the IDX, we hope to strengthen fundamentals. We hope to regain the interest of companies to conduct IPOs,” Hasan said during an OJK meeting in Jakarta on Friday.

According to Hasan, the OJK regularly organises socialisation programmes and coaching clinics for companies interested in becoming issuers. During these activities, companies are provided with an understanding of the IPO process, the technicalities of share listing, and the various preparations required to become a public company.

He explained that the OJK, together with the IDX, is also running a development programme for regional companies heading towards an IPO. The coaching clinic programme is aimed at increasing company readiness, particularly regarding corporate governance and meeting various requirements before obtaining permission to list shares on the exchange.

Furthermore, the OJK is currently reviewing several policies related to public offerings to simplify the IPO process. However, it has been ensured that such simplification will not reduce the quality of listed companies or the level of protection for investors.

Hasan emphasised that the enthusiasm of companies to conduct IPOs remains steady. This is reflected by the 14 companies currently in the pipeline that have submitted registration applications to conduct IPOs this year.