Southeast Asia IPO market with additional coverage on Singapore and … · 2020-02-12 · Southeast...

Southeast Asia IPO market with additional coverage on Singapore and Indonesia 2016 Report

02

Brochure / report title goes here | Section title goes here

The Southeast Asia economy 01

Southeast Asia IPO market 02

Singapore IPO market 10

Indonesia IPO market 16

About us 20

Talk to us 21

Report as of December 9, 2016

01

2,072

2,118

2,243

2,406

2,536

2,737

3,636

4,902

9,181

Italy

Russia

Brazil

Southeast Asia

UK

France

Germany

Japan

China

USA 16,800

Southeast Asia, with 7% of the world population, contributes 3% of world GDP

The combined market capitalisation of ASEAN Exchanges was US$2.1 trillion, with over 3,600 listed companies, as at end August 2012.Source: World Federation of Exchanges, 2012

The Association of Southeast Asian Nations ("ASEAN") is the seventh-largest economy in the world, with a combined Gross Domestic Product ("GDP") of US$2.4 trillion in 2013. With more than 22 percent of the region's population living in cities, these urban areas account for more than 54 percent of the region's GDP.

ASEAN is well positioned in global trade flows and is the fourth-largest exporting region in the world, trailing only the European Union, North America, and China/Hong Kong. Over the years, its member states have developed more sophisticated manufacturing capabilities with increasing diversification in their exports.

Source: McKinsey, 2016

GDP in 2013 (US$'billion)

The Southeast Asia economy

Southeast Asia IPO market

02


There was a total of 409 IPOs across Southeast Asia from 2014 to 2016. Despite the global political and macro-economic situation over the past years, which includes Brexit and the U.S. presidential elections, funds raised in the region increased 23% from 2015 to 2016.

Vietnam contributed the highest number of IPOs at 147 out of 409 IPOs across ASEAN from 2014 to 2016. This is due to government efforts to privatise state-owned enterprises ("SOE"), and to reduce the country's increasing government debt-to-GDP ratio resulting from the consistent 5 to 6 percent GDP budget deficit in recent years.

In uncertain times, corporate governance and regulations play even greater roles as investors move to traditionally less risky assets, including Gold and currencies like the Japanese Yen. Exchanges with more robust regulations such as the SGX continue to be favoured by investors.

“There is a lot of potential in the emerging markets in Southeast Asia. Listings in the top three performing industries were largely from Thailand and Vietnam with Singapore being the third contributing country. With an average economic growth rate of 4.8% in ASEAN, the countries that make up this dynamic region represent a thriving trade and economic hub, and the prospects will be even greater if there are to be further improvements to infrastructure and regulatory policies.”

Dr Ernest Kan, Deputy Managing Partner (Markets), Deloitte Singapore, November 21, 2016

201620152014106 dealsS$7.2 billion

(23% )

154 dealsS$5.9 billion

(40% )

149 dealsS$9.8 billion

*data is accurate as at December 9, 2016 and does not include the upcoming IPOs from December 10 to 31, 2016

Number of IPOs in 2014 – 2016

Number of IPOs and amount of funds raised

12

6

9

4 3

13

27

11

8

20

27

10

6

5

3

13

37

10

6

10

25

35

8

6

7

7

27

7

4

9

17

11

2014 H1 2014 H2

54

2015 H1 2015 H2 2016 H1 2016 H2

13

35

102

147

58

Indonesia

Malaysia

Philippines

Singapore

Thailand

Vietnam

2 1 1 2


03

An overview of 2014 to 2016: funds raised and market capitalisation

While Thailand has the highest amount raised and market capitalisation, Singapore and Malaysia markets have a higher proportion of funds raised to total market capitalisation of all IPOs over the past three years. Investors have larger capital bases, and are willing to invest and hold onto larger stakes for new IPOs.

This could indicate greater confidence in these markets where investors believe in management’s ability to steer these companies forward and deliver on their promises.

Major privatisation of SOEs in Vietnam, with many of them having low profitability and slow listing progress, may have caused low funds raised as compared to market capitalisation.

Source: Business Times, November 1, 2016

In Vietnam, we see that the amount raised as a proportion of the market capitalisation is less than 5%.In the Vietnam market, investors take on minority stakes in companies, and are also deterred by concerns over their large amounts of debt and unclear company valuation after decades of government ownership. This market is less mature with a smaller pool of investments and foreign direct investments ("FDIs") to absorb the influx of IPOs released into the market by the government.

Amount raised and market capitalisation of IPOs

3,3744,254

1,758

6,226 6,570

665

17,297

10,376

7,704

21,586

26,278

16,704

5,000

0

10,000

15,000

20,000

25,000

30,000

Indonesia Malaysia Philippines Singapore Thailand Vietnam

Amt Raised (S$'m) Market Cap (S$'m)


04

On Indonesia

“The push is part of an effort to become Southeast Asia’s biggest stock exchange within five years”, CEO of PT Bursa Efek Indonesia (BEI), Tito Sulistio said in February 2016. He is also asking for rule changes to enable IPOs for real estate trusts and more state-owned enterprises.”

Source: Bloomberg, March 30, 2016

Thailand leads the region both in terms of total IPO amount raised (S$6.6 billion) and market capitalisation (S$26.3 billion).

Being developing nations with strong government efforts in revitalising the stock markets, countries like Thailand and Indonesia have a good pipeline of eligible home grown companies primed for listing, and have shown a stable number of IPOs and capital raised over the past three years. Indonesia, which has Southeast Asia’s biggest population and largest economy, plans to start an exchange dedicated to young technology companies, while Thailand’s premier has also highlighted the importance of the country’s capital markets.

Singapore’s slide down the IPO rankings in 2015 reflects not so much its own failings, but that of the success of other Southeast Asian countries, such as Indonesia and Thailand, which have been targeting local companies to list on their stock exchanges rather than to list in traditional regional capitals such as Singapore and Hong Kong. For example, to attract these local companies and Real Estate Investment Trusts ("REITs") which are already listed on stock exchanges, the IDX has turned to promises such as greater tax rebates and other forms of incentives. However, Singapore has rebounded to raise the most funds in Southeast Asia in 2016.

Year-on-Year amount raised in 2014 – 2016

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Malaysia Philippines Singapore Thailand VietnamIndonesia Malaysia Philippines Singapore Thailand Vietnam Total

▪ 2014 965 2,272 425 3,451 2,514 135 9,762

▪ 20152016Total

1,1661,2433,374

2854,254

1,1761,758

2,2636,226

1,9716,570

266665

7,20422,847

1,697 157 512 2,085 264 5,881

▪

Amt R

aise

d (S

$’m

)

Indonesia has consistently raised approximately S$1 billion each year

Singapore IPO Market has rebounded in 2016 to resume its position as market leader in Southeast Asia


05

Vis-à-vis other global exchanges

IPO listings in Southeast Asia outperformed Hong Kong and Australia by IPO count for three consecutive years

Five of the ten member countries of ASEAN are among the top 25 countries globally in terms of GDP growth. Given current growth patterns, the ASEAN Economic Community (“AEC”) is predicted to rise to become the fourth-largest economy by 2030.

Compounded by the fact that China’s economic growth has been slowing over the years, foreign companies and investors are led to look towards Southeast Asia as a region of economic interest.

This is in line with Annual Real GDP Growth which shows that ASEAN-5 had a higher growth rate at 4.8% as compared to Hong Kong (2016: 1.4%) and Australia (2016: 2.9%) throughout the period.

Moreover, the high number of IPOs indicate that Southeast Asia stock markets are active and liquid.

Source: Bloomberg

Number of IPOs in 2014 – 2016

149

106125

76

154

116

219

99106 103

191

83

0

50

100

150

200

250

No.

of I

POs

Southeast Asia Hong Kong China Australia

2014

2015

2016

409

325

535

258Source: IMF

S$22.8 billion S$91.7 billion S$77.5 billion S$35.9 billion

2014 2015 2016ASEAN - 5 4.6% 4.8% 4.8%Hong Kong 2.7% 2.4% 1.4%

China 7.2% 6.9% 6.6%Australia 2.7% 2.4% 2.9%

Annual Real GDP Growth


06

Industry analysisAs ASEAN develops, the market has shown a movement towards tertiary industries such as Financial Services and Life Sciences and Health Care, a move from traditional ASEAN stronghold industries such as Consumer Business and Energy and Resources. Going forward, there is likely to be a greater shift to tertiary industries as the region continues to focus on human capital and invest funds into research and development.

Industry breakdown in 2015 and 2016 by number of IPOs

28%CB18%

IP22%IP

14%

ER13%

ER17%

FS9%

FS4%

RE11%

RE16%

LSHC9%

LSHC5%

PS11%

PS10%

TMT7%

TMT6%

2015 2016

CB

Public Sector (PS)Technology, Media and Telecommunications (TMT)Consumer Business (CB)Industrial Products (IP)

Energy and Resources (ER)Financial Services (FS)Real Estate (RE)Life Sciences and Health Care (LSHC)

Total number of IPOs and amount raised in 2014 – 2016

Amt R

aise

d (S

$’m

)

No.

of I

POs

88

6871

33

55

21

44

29

4,015

1,526

5,758

719 929

8,914

460 527

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

0

10

20

30

40

50

60

70

80

90

100Top 3 industries based on IPO count

Real Estate raised the most funds at S$8.9 billion over the past three years.

Out of which S$6.1 billion came from REITs in Singapore (S$3.8 billion), Thailand (S$2.2 billion) and Malaysia (S$80.9 million)

ConsumerBusiness

IndustrialProducts

Energy andResources

FinancialServices

RealEstate

PublicSector

Technology, Media andTelecommunications

Life Sciencesand Health Care


07

• Consumer Business, Energy and Resources and Industrial Products are the top 3 industries based on IPO count in 2014 to 2016. In Southeast Asia emerging markets, all these industries represent 50-60% of total GDP. With cheap labour market, improved infrastructure and technology utilisation, as well as recent formation of the AEC which further eases exploitation of economies of scale, Southeast Asia is seen as a growing production base for the 3 sectors.

• Singapore’s, Thailand’s and Malaysia’s REITs listings over the period raised a total of S$6.1 billion (S$3.8 billion, S$2.2 billion and S$80.9 million respectively), which made up 68% of funds raised in Real Estate sector.

Amount raised in 2015 and 2016

1,030

177

2,031

81

1,893

561

23 85 272

834

2,054

228

3,365

26338 150

0

1,000

500

1,500

2,000

2,500

3,000

3,500

2015 2016

Amt R

aise

d (S

$’m

)

ConsumerBusiness

IndustrialProducts

Energy andResources

FinancialServices

RealEstate

PublicSector



Top industries in 2016 by amount raised: 1) Real Estate2) Energy and Resources3) Industrial Products

Total number of IPOs in 2014 – 2016

0 5 10 15 20 25 30 35 40

Consumer Business

Industrial Products

Energy and Resources

Financial Services

Real Estate

Life Sciences and Health Care

Public Sector


Indonesia Malaysia Philippines Singapore Thailand Vietnam


08

The listings on the respective exchanges reflect the respective countries' customs, industry composition and local regulations.

In Singapore, Malaysia and Thailand, due to the more developed capital markets and correspondingly, the greater ability to attract FDIs, capital intensive sectors such as Real Estate have a larger number of IPOs.

With large number of Energy and Resources companies in Vietnam and Thailand, and where a significant portion of the workforce is involved in the primary and secondary industries, there is also a large number of IPOs in the Energy and Resources sector that are seeking capital for expansion.

Indonesia also ranks amongst the countries which traditionally have a large number of financial institutions due to geographical layout of the country. In recent years, with the primary reserve requirement ratio for Rupiah deposits lowered by 6.5 percent1, and with the government undertaking major reforms and stimulus packages to improve the banking system in Indonesia, many banks have turned to capital markets to improve brand reputation and seek fresh capital, resulting in a high number of IPOs from companies in the Financial Services sector over the past three years.

1. Indonesia Investments, March 23, 2016

Indonesia 4 6 8 15 8 2 3 8 54

Malaysia 9 6 7 2 5 2 1 3 35

Philippines 4 3 2 0 3 0 0 1 13

Singapore 13 8 9 6 10 7 1 4 58

Thailand 23 16 21 7 20 6 0 9 102

Vietnam 35 29 24 3 9 4 39 4 147

Total 88 68 71 33 55 21 44 29 409


09

Median price-earnings (“PE”) ratio as at IPO in 2014 - 2016

Change in share price from IPO date to December 9, 2016 for IPOs in 2015 and 2016

Valuation

Indonesia, Vietnam and Thailand IPOs have higher PEs as compared to the IPOs on exchanges like the SGX and Bursa Malaysia. This could be attributed to the investors' expectation of higher growth and returns from the companies listed on these stock markets.

For the traditionally more regulated markets in ASEAN such as Singapore and Malaysia, PE is usually stable at between 8 - 10 times earnings. For such developed markets, dividends are also often paid out more frequently. Capital appreciations are consequently more stable.

The above chart shows strong post-IPO performances across Southeast Asia for 2015 and 2016 IPOs, with a range of 7% to 66% average change in share prices from initial offer prices to December 9, 2016. Displaying especially high changes in share prices are Indonesia and Thailand, which could be attributed to the success of continued efforts by the local governments in expanding capital markets.

Vietnam27.5 Thailand

26.0Philippines

8.9

Indonesia29.0

Malaysia10.4

Singapore8.0

Indonesia, Vietnam and Thailand IPOs have exceptionally high PEs

Vietnam

Thailand

Singapore

Malaysia

Philippines

Indonesia

There is positive performance for IPOs from the past 2 years across Southeast Asia

7%

62%

7%

23%

11%

66%

Singapore IPO market

10


Overview Singapore saw 16 listings in 2016 to date.

There were 2 Company IPOs and 3 REITs on SGX

Mainboard, with S$235 million and S$1.9 billion funds raised respectively, and S$1.3 billion and

S$2.6 billion market capitalisation at IPO.

In addition, there were another 11 Catalist IPOs with

S$106 million funds raised and S$529 million

market capitalisation at IPO.

2015: 12 Catalist listings with S$237 million funds raised and S$1.5 billion market capitalisation

1 REIT listing with S$276 million funds raised and S$394 million market capitalisation

Singapore IPO performance improved in 2016. This is in spite of global issues such as Brexit, the impact of the 2016 U.S. presidential elections, uncertainty surrounding a federal interest rate hike, and a decrease in domestic GDP y-o-y growth rate in Q3 2015 of 0.6%.

Persistent low interest rates around the world have driven demand for REITs, which pay out a large portion of their earnings as dividends.

In 2016, REITs continue to be the main contributor to total amount raised during the year at S$1.9 billion and IPO market capitalisation of S$2.6 billion. (2015: total amount raised of S$275.5 million and S$394.2 million)

Singapore IPO performance took a better turn in 2016 with 342% increase in amount raised and 133% increase in market capitalisation.

56 456

1,608

655

412

1,476

2,238

2,157

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2015 H1 2015 H2 2016 H1 2016 H2

Market Cap (S$'m) Amt Raised (S$'m)

Amount raised and market capitalisation in 2014 - 2016


11

Listings in 2016

Over the past eleven months, the SGX has raised over S$2.2 billion proceeds and achieved total market capitalisation of S$4.4 billion. The share prices of the 16 IPOs in 2016 have on average increased by 12% from their IPO prices, with Acromec Limited being the best performer with an increase of 138%. Conversely, Eindec Corporation Limited and Anchor Resources Limited have seen their share prices falling by 76% and 62% since IPO date respectively.

# Company Mainboard/ Catalist

Date of listing

Amount Raised

(S$’million)

IPO Market Cap (S$’million)

Offer Price(S$)

Share Price as at Dec 9,

2016

Share Price % Change

1 Eindec Corporation Limited

Catalist 15-Jan-16 7.52 22.62 0.210 0.051 -75.71%

2 GS Holdings Limited Catalist 18-Jan-16 6.00 31.00 0.250 0.335 34.00%

3 Secura Group Limited Catalist 28-Jan-16 28.00 100.00 0.250 0.205 -18.00%

4 Anchor Resources Limited

Catalist 18-Mar-16 7.20 69.93 0.250 0.094 -62.40%

5 Acromec Limited Catalist 18-Apr-16 5.94 26.46 0.220 0.525 138.64%

6 Manulife US REIT Mainboard (REIT)

20-May-16 650.001 720.002 USD 0.830

USD 0.820 -1.20%

7 Frasers Logistics and Industrial Trust

Mainboard (REIT)

20-Jun-16 903.00 1,268.38 0.890 0.940 5.62%

8 United Global Limited Catalist 08-Jul-16 10.70 70.70 0.250 0.285 14.00%

9 Advancer Global Limited

Catalist 11-Jul-16 9.46 38.10 0.220 0.370 68.18%

10 Procurri Corporation Limited

Mainboard 20-Jul-16 38.57 156.80 0.560 0.405 -27.68%

11 Katrina Group Limited Catalist 26-Jul-16 7.52 48.62 0.210 0.220 4.76%

12 Wong Fong Industries Limited

Catalist 28-Jul-16 9.89 54.05 0.230 0.275 19.57%

13 EC World Real Estate Investment Trust

Mainboard (REIT)

28-Jul-16 368.19 626.79 0.810 0.720 -11.11%

14 China Jinjiang Environment Holding Company Limited

Mainboard 3-Aug-16 196.81 1,095.14 0.900 0.850 -5.56%

15 AGV Group Limited Catalist 26-Aug-16 5.92 27.71 0.220 0.200 -9.09%

16 HC Surgical Specialists Limited

Catalist 3-Nov-16 8.10 39.50 0.270 0.600 122.22%

Total 2,262.82 4,395.80 12.26%

1. USD 469.88 million (USD/SGD: 1.383)2. USD 519.20 million (USD/SGD: 1.383)


12

In 2016, SGX had 3 REITs IPOs that contributed to 85% of amount raised for the year. While in 2015, the listing of a single REIT, BHG REIT, contributed to 54% of the total proceeds raised during the year.

The 5 Mainboard listings in 2016 contributed to 95% of the total amount raised, a rise from the single Mainboard listing in 2015 which contributed 54% of total proceeds.

Industry overview: 2016 comparison with 2015

Amount raised in 2015 and 2016

Industry breakdown in 2015 and 2016 by number of IPOs

CB31%

CB19%

TMT8%

TMT6%

IP8%

IP31%

ER19%FS

8%

FS0%

RE15%

RE19%

LSHC15%

LSHC6%

Consumer Business (CB)

Industrial Products (IP)

Energy and Resources (ER)

Financial Services (FS)

Real Estate (RE)

Life Sciences and HealthCare (LSHC)Technology, Media andTelecommunications (TMT)

2015 2016

ER15%

103

12 34

25

293

41 6

45 35

215

-

1,921

8 39

0

100

200

3002015 2016

Amt R

aise

d (S

$’m

)

ConsumerBusiness

IndustrialProducts

Energy andResources

FinancialServices

RealEstate




13

Singapore IPO Review: Real Estate Investment Trusts and Business Trusts

Main geographical assets for Trusts

Top 3 Trusts in 2014 - 2016 based on amount raised

Over the past 3 years, 67% of the 9 REITs and Business Trusts (collectively "Trusts") listed in Singapore has assets based overseas. SGX continues to attract Trusts listings and the top 3 largest Trusts listed over the past 3 years all have overseas assets.

903 759

650

1,268 1,066

720

Frasers Logisticsand Industrial Trust

(20-Jun-16)

Accordia Golf Trust(1-Aug-14)

Manulife US REIT(20-May-16)

Amount Raised (S$'m) Market Cap (S$'m)

EUROPE(S$369.0 m)

1CHINA(S$643.7 m)

2

JAPAN(S$758.6 m)

1

AUSTRALIA(S$903.0 m)

1SINGAPORE(S$1.2 bn)

3

USA(S$650.0 m)

1

Note: Most REITs hold assets across regions and we have categorised the geographical region by the most pre-dominant asset within each REIT. The amounts above represent funds raised.


14

Total number of IPOs and amount raised in 2014 – 2016

IPOs over three years 2014 - 2016

SGX MainboardS$1.0 billion

Funds Raised

S$11.1 billionIPO Market Cap

PE Ratio 9

SGX CatalistS$648.8 million

Funds Raised


PE Ratio 8

TrustsS$4.6 billion

Funds Raised


SGX continues to focus on Trusts and Mainboard listings as means to attract large amounts of capital into the market. Although Trusts comprise only 16% of the total number of IPOs over the past 3 years, they contributed to 73% of total amount raised.

Trusts form 73% of total amount raised.

0

2

4

6

8

10

12

14

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

No.

of I

POs

Amt R

aise

d (S

$’m

)

ConsumerBusiness1

IndustrialProducts

Energy andResources

FinancialServices

RealEstate2

PublicSector



13

8

1,180

79

754

112 15116 58

9

6

3,876

7

1

4

10

1. Consumer Business includes Accordia Golf Trust (total amount raised: S$758.6 million) 2. Real Estate includes 8 REITs (total amount raised: S$3.8 billion)


15

Singapore IPO Review: by industry

Growth industries such as Financial Services and Technology, Media and Telecommunications contributed 17% of Singapore IPOs over the past three years and have consistently had amongst the highest median PE ratios as at IPO of 12 to 13. The higher valuation based on their pre-IPO earnings may indicate investors’ confidence in the growth prospect of such companies.

Consumer Business13 deals(S$1.2 billion)

Real Estate10 deals(S$3.9 billion)

Energy and Resources9 deals

(S$754.5 million)

Median PE ratio as at IPO in 2014 – 2016

Consumer Business

Industrial Products

Energy and Resources

Financial Services

Real Estate

Life Sciences and Health Care

Public Sector


13

8

9

6

2*

7

1

4

9

7

6

7

4

8

12

13

• IPS Securex Holdings Limited (2014 | PE: 13)• mm2 Asia Limited (2014 | PE: 16)• CMC Infocomm Limited (2015 | PE: 7)• Procurri Corporation Limited (2016 | PE: 13)

*Does not include REITs

Deals PE

Indonesia IPO market

16

0

500

1,000

1,500

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

Inde

x

CAGR 2008-2015 = 22.5%(Post Global 2008 crisis)

13-Jul-1992Privatisation of JSX321.544

23-Dec-1997Founding ofKSEI397.031

30-Dec-20051,045.44

06-Jan-2014Adjustment to Lot Size & Tick Size4,202.809

02-May-2016Adjustment to Tick Size4,808.319

9-Dec-20165,308.126

30-Dec-20154,593.008

22-May-1995JATS

461.389

6-Aug-1996Founding of KPEI

554.790

21-Jul-2000Scriptless Trading

512.617

9-Sep-2002T+4 to T+3 Settlement

430.271

8-Oct-2008Suspend Trading

1,451.669

2-Mar-2009JATS Next G

1,256.109Jan-2012

Establishment of OJK

3,809.140

02-Jan-2013Extending

Trading Hours4,254.816

Des-2012Establishment

of SIPF4,290.796

7-Apr-2015Highest Index

5,523.290

6-Oct-2004Launching of Stock Option

856.060

30-Nov-2007Consolidation of the SSX into JSX

to become the IDX2,688.332

28-Oct-2008Lowest Index

in 20081,111.390

28-Mar-2002Implementation of

Remote Trading481.775

23-Jul-1997Financial Crisis

718.189

24-Jul-1995Merging of SSX into

Bursa Paralel Indonesia509.532


Overview Indonesia saw 15 listings in 2016 as of

December 9, 2016. There were 3 Company

IPOs on IDX Mainboard, and 12 on the

Secondary Board, with total amount raised

of IDR 11.9 trillion. Total market

capitalisation also grew by 18% from

IDR 4,873 trillion in 2015 to

IDR 5,756 trillion as of December 9, 2016.

The JCI has performed very well, as shown by the 16% increase in JC Index from 4,593 in 2015 to 5,308 as of December 9, 2016. This shows a good sign of investors flowing into the Indonesia stock market and positive results from Indonesia's policy reform.

Financial policy reforms passed by the government, such as macroeconomic ease imposed by Bank Indonesia ("BI"), IDX incentives, REITs tax reduction, 14 economic reform packages, and tax amnesty program should bring positive impact for the Indonesia IPO market.

Jakarta Composite Index ("JCI") decreased significantly in 2008 due to the global economic crisis and rebounded afterwards by showing an outstanding compound annual growth rate ("CAGR") of 23% from 2008 to the end of 2015.

Jakarta Composite Index and Capital Market Milestones1992 - December 9, 2016

14 Economic Reform Package

REITs 0.5% final tax and 1% BPHTB

IDX decreased allotment size to 100 shares

per lot

BI’s lowered 7 day reverse repo rateto 4.75%

USD 300 billion Tax Amnesty

repatriated fund

IDX Growth Jan-Dec 9, 2016

17%


17

Listings in 2016

During the year of 2016, the IDX has raised more than IDR 11.9 trillion funds. Share prices of the 15 newly listed companies in 2016 have an average increase of 80% from their initial IPO prices, with PT Indo Komoditi Korpora Tbk being the top performer by achieving 374%, while PT Bank Ganesha Tbk experiences the largest share price decrease of 22%.

# Company Mainboard/ Catalist

Date of listing

Amount Raised

(IDR billion)

IPO Market Cap (IDR billion)

Offer Price(IDR)

Share Price as at Dec 9,

2016

Share Price % Change

1 PT Bank Artos Indonesia Tbk

Secondary 12-Jan-16 32 158 132 160 21.21%

2 PT Mitra Pemuda Tbk Secondary 10-Feb-16 31 142 185 290 56.76%

3 PT Mahaka Radio Integra Tbk

Secondary 11-Feb-16 79 394 750 905 20.67%

4 PT Bank Ganesha Tbk Secondary 12-May-16 553 1,140 103 80 -22.33%

5 PT Cikarang Listrindo Tbk

Mainboard 14-Jun-16 2,413 24,131 1,500 1,450 -3.33%

6 PT Sillo Maritime Perdana Tbk

Secondary 16-Jun-16 70 350 140 448 220.00%

7 PT Duta Intidaya Tbk Secondary 28-Jun-16 86 374 180 190 5.56%

8 PT Graha Andrasentra Propertindo Tbk

Secondary 29-Jun-16 322 3,161 140 446 218.57%

9 PT Protech Mitra Perkasa Tbk

Secondary 18-Jul-16 30 68 190 252 32.63%

10 PT Capital Financial Indonesia Tbk

Secondary 19-Jul-16 715 1,501 130 460 253.85%

11 PT Waskita Beton Precast Tbk

Secondary 20-Sep-16 5,167 12,917 490 590 20.41%

12 PT Indo Komoditi Korpora Tbk

Secondary 28-Sep-16 N/A* 177 100 474 374.00%

13 PT Paramita Bangun Sarana Tbk

Mainboard 28-Sep-16 360 1,800 1,200 1,290 7.50%

14 PT Aneka Gas Industri Tbk

Mainboard 28-Sep-16 843 3,373 1,100 1,005 -8.64%

15 PT Prodia Widyahusada Tbk

Secondary 7-Dec-16 1,219 6,094 6,500 6,500 0.00%

Total 11,920 55,780 79.79%

Note: *) Re-listing


18

Between 2014 to December 9, 2016, there were 54 new companies listed in Indonesia. Among the 54 companies, Financial Services companies and Technology, Media and Telecommunications companies accounted for the most, amounting to 15 and 8 companies, respectively. Life Sciences and Health Care and Public Sector are expected to improve starting from 2017.

The two charts below show the total trade values of listed companies on the IDX by industry in October 2016, as well as their market capitalisations as of October 2016. Finance, Consumer Goods, and Property, Real Estate and Construction recorded the highest total trade values, while Finance, Consumer Goods, and Infrastructure, Utilities and Transportation held the highest market capitalisations - in aggregate, over 60% of the total market capitalisation in Indonesia.

Listed Companies by Industry

Number of IPOs per sector in 2014 - 2016

Total Trade Value (IDR billion) - October 2016 Market Capitalisation (IDR billion) - October 2016

1 1 1 1 1 1 1

0 0 0

2 2 2 2 2 2

3 3 3

8

4 4

5 5

8

7

6

5

4

3

2

1

0

ConsumerBusiness

IndustrialProducts

Energy andResources

RealEstate

2014

2016

2015

PublicSector


FinancialServices


No.

of I

POs

Sector

Mining17,435 17%

Mining271,733 4%

Agriculture4,076 4%

Agriculture 132,995

2%

Finance19,985

19%Finance

1,472,59625%Basic Industry

and Chemicals9,132 9%

Basic Industry and Chemicals400,259 7%

MiscellaneousIndustries7,230 7%

Miscellaneous Industries392,627 7%

Consumer Goods7,654 7%

Consumer Goods 1,367,653 23%

Infrastructure, Utilities and

Transportation 11,341

11%Infrastructure,

Utilities and Transportation

750,608 13%

Property, Real Estate and Construction18,133 17%

Property, Real Estate and Construction454,382 8%

Trade, Services and Investments

9,5859%

Trade, Services and Investments

624,108 11%

Source: IDX Monthly Statistics, October 2016


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Indonesia Review: by industry

IDX Outlook for 2017

The top sectors include Finance (total 89 companies with total market cap of IDR 1,472.6 trillion and PE of 20.5x), Consumer Goods (total 39 companies with total market cap of IDR 1,367.7 trillion and PE of 13.6x), and Infrastructure, Utilities and Transportation (total 56 companies with total market cap of IDR 750.6 trillion and PE of 9.9x).

IDX targets 35 IPOs next year

AgricultureInclude Indonesia’s major agriculture players with worldwide distribution

Total 21 companies, with total market cap of IDR 133.0 trillion

MiningIncludes various mining sectors from energy and resources industry


Basic Industry and ChemicalsInclude Indonesian’s key chemical industry players

Total 66 companies, with total market cap ofIDR 400.3 trillion

PE29.42x

PE18.04x

PE12.50x

Miscellaneous IndustriesInclude other Indonesia’s growing industries


Infrastructure, Utilities and TransportationThe largest growing sector supported by the Government


Consumer GoodsInclude Indonesian’s key consumer goods players with worldwide distribution

Total 39 companies, with total market cap of IDR 1,367.7 trillion

PE12.05x

PE9.87x

PE13.57x

Property, Real Estate and ConstructionInclude major construction fields in Indonesia


FinanceInclude former state-owned banks

Total 89 companies, with total market cap of IDR 1,472.6 trillion

Trade, Services and InvestmentsFull range of companies in trading, services, and investments


PE24.30x

PE20.50x

PE15.59x

IDX expects to reach IDR 8 trillion (US$608 million) in average daily transactions, up from the targeted IDR 6.6 trillion set in 2016.

1Increase IPOs of foreign companies. The IDX has selected 52 foreign companies that generate 50 percent of their earnings in Indonesia but are currently listed abroad.

2Increase IPOs of state owned firms. State owned firms play a big role in the Indonesian economy but relatively few are listed. 14 units of state-owned enterprises plan for IPOs in 2017.

3IDX to develop incubators for start-up companies to provide them with places, technical guidance and opportunities to meet with angel investors, so they would be able to head for IPO.

4IDX would promote information and educate potential companies through ‘Go Public’ information centres in various regions in a bid to grow the number of listed companies.

5

IDX Industry Sector Highlight – October 2016

Source: IDX Monthly Statistics, October 2016


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About us

Our Global IFRS and Offerings Services ("GIOS") professionals provide a diverse range of services ranging from IFRS implementation services, reporting advisory services and cross-border offerings services. We specialise in serving companies seeking Initial Public Offerings (IPOs) and other fund raising options, and have a wealth of experience in helping clients list on either their home or overseas stock exchanges, as well as other fund raising options.

Knowledgeable about regulatory requirements of theSoutheast Asia market

Experience in executing public offerings as reportingaccountants, IFRS and reporting advisory transactions

Adept at assisting clients in preparation for fund-raisingand public listings

Ability to advise on the responsibilities andrequirements of post-offering reporting requirements

Global IFRS and Offerings Services


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Talk to us

To find out more, please contact the respective GIOS Country Leaders:

Southeast Asia and SingaporeErnest [email protected]+65 6530 5517

Guam Vensel, Lee H. [email protected]+1 671 646 3884

PhilippinesBaltazar, Wilfredo [email protected]+63 2 581 9000 ext 011

VietnamLe Dinh, Tu [email protected]+84 8391 00751 ext 6226

IndonesiaSinaga, Rosita [email protected]+62 21 2992 3100 ext 32555

SingaporeTay Hwee [email protected]+65 6216 3258

MalaysiaHuang, Gary [email protected]+60 3 7610 8812

ThailandMeakhaamnouychai, Suwatchai [email protected]+66 2034 0139 ext 40139

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