“Why PT Wir Asia Tbk (WIRG) Share Price Has Fallen More Than 23% Since IPO?”

Jakarta, CNBC Indonesia – More than a year of listing on the stock exchange, PT Wir Asia Tbk (WIRG)’s share price movement has even fallen to IDR 128/share. This position is lower than the IPO price of IDR 168/share. This means that investors who have held these shares since the IPO have instead recorded a loss of -23.80%.

As of 10.58 WIB on Monday trading (8/5/23), WIRG’s share price was holding at IDR 128/share. The share price movement was relatively stagnant with a volume of 36.23 million shares and a transaction value of IDR 4.72 billion.

In buy or bid positions, there was a queue of 177,656 lots, most at Rp. 128/share of 35,188 lots. Meanwhile, in the sell or ask position, there was a queue of 318,665 lots, most at IDR 135/share of 98,543 lots. The selling position is the most dominant at the moment, which means that the potential for a decline in the share price can still continue.

Even though during the initial listing period or since April 4 2022, WIRG’s share price movement had rallied for 10 consecutive days and recorded a Auto Reject Top (ARA) for seven times, reaching its highest price at Rp1.600/share on trade intraday or up more than 8 times the IPO price.

Meanwhile, the highest closing price for WIRG shares was at Rp 1,340/share which was recorded in April last year.

In the last year, WIRG shares have fallen 76% and from their highest price, WIRG shares have fallen 90%.

The unlucky fate that WIRG is currently experiencing is not without cause. One of the reasons comes from the past lock-up which ended in 2022 and then made several large investors sell their shares. A number of investors who were recorded as reducing their share ownership in WIRG in December 2022 include WIR Global Creative, Laut Biru Teknologi, and Angga Yudhitama Putra.

Judging from the valuation, it is still relatively expensive, this can be seen from WIRG’s share price until Monday’s trading (8/5/23) at IDR 128/share, which is equivalent to 2.53 times its book value. Meanwhile, the fair price is IDR 51/share.

In addition, the decline in stock prices occurred due to the fading metaverse trend, coupled with the dragging technology industry due to rising interest rates and high inflation. This can be seen from the movement of IDX TECHNO which has fallen by more than 40% over the past year.

Even so, the prospects for the development of the WIRG metaverse are still continuing. Moreover, there is the Salim Group which entered through PT Surya Semesta Karya Persada to build a joint venture or Joint Venture (JV) with WIRG, namely PT Meraverse Indonesia Makmur (MIM).

The joint venture company is known to have formed the Nusameta platform which is referred to as the digital version of Indonesia which consists of platforms and integrations online-to offline (O2O) that enables users to realize the interaction between the real and digital worlds.

(fsd/fsd)