Reporter: Harry Prasetyo
| Publisher: Markus Sumartomjon
KONTAN.CO.ID – JAKARTA. Celebration initial public offering (IPO) set an all-time high. The Indonesia Stock Exchange (IDX) noted that the number of issuers having listed their shares on the exchange so far this year has reached 59 companies with an IPO value of IDR 33 trillion.
The record for the number of IPOs this year broke the previous record which was set in 2018 by 57 issuers. Even so, the value of this year’s IPO is still lower than the acquisition of IPO funds in 2021, which reached IDR 62.6 trillion.
IDX’s efforts to encourage companies to go public are certainly worthy of praise. After all, the IPO offers several benefits. For issuers, an IPO is a means of obtaining additional capital from the public.
For investors, more and more companies are become public provides more options for investing. Opportunities for making money are even more open. Buyers of ADMR shares in the primary market certainly feel the pleasure of making money on IPO shares.
However, as we know, the stock market is sometimes cruel, even unforgiving. Not all listed stocks have managed to score price increases this year. In fact, the price of some listed shares this year fell below the IPO price.
The movement of stock prices depends on market mechanisms. The problem is, if we look further back, there are several stocks that have been listed for a long time but have so far been suspended and even have the potential to be delisted.
Just look at, for example, ENVY and POSA shares which were listed in May and July 2019. Since the end of 2020, the IDX has temporarily suspended trading of ENVY and POSA, whose prices were already at the gocap level, until Now. The suspension of both reached more than 24 months, the deadline within which the IDX can delist.
An additional problem is that some of the shares that could be delisted are owned by the public. In ENVY and DUCK, for example, the community owns 93% and 87% of the property, respectively.
This means that it is the community that bears the greatest losses as a result of the revoked shares. Understandably, issuers don’t necessarily have the money to buy back their shares that have been delisted.
So while IPOs must be encouraged, the selection of potential issuers must also be protected from the outset. Don’t let the stock market become an arena for robbery while retail investors instead of making a profit are left stumped.
