Three Indonesia's Big Tech Companies Will Go Public

JAKARTA, KOMPAS.com - Chief Executive of the Capital Market Supervisory Financial Services Authority (OJK) Hoesen said that three unicorn and decacorn companies will list their initial shares on the Indonesia Stock Exchange (IDX) this year.

"Three Indonesian start-up companies are planning to conduct an IPO [initial public offering]. Based on the results of the valuation, the three technology companies have the status of unicorn and decacorn with a valuation of approximately $21 billion," said Hoesen at the Investor Daily Summit on Thursday, July 15.

Based on IDX data, as of July 2, 2021, three shares of tech companies ranked among the top 10 companies by market capitalization of over 100 trillion rupiahs ($7 billion).

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"This shows that companies engaged in technology are slowly starting to decorate the ranks of the big caps on the Indonesia Stock Exchange," he said.

Although the number of issuers' market capitalization in the technology sector is still around five percent, it does not hinder the prospects in the technology sector.

"With the entry of unicorns and decacorns into the domestic stock market, this will certainly increase the market cap of stocks on the IDX and attract more investors, especially foreign investors," he said.

To accommodate companies with unicorn and decacorn status in Indonesia, Hoesen explained that OJK is working with IDX and other stakeholders in preparing regulations for unicorn or decacorn characteristics.

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This regulation will provide a sense of protection and security for technology companies to enter the Stock Exchange. However, IDX is still developing the Multiple Voting Share (MVS) regulation to accommodate the IPO of these technology companies.

There is also the development of technology-based investor education, improvement of trading mechanisms (preclosing, market orders, periodic orders), optimization of the monitoring system, development of a co-location system for exchange members, and optimization of Alternative Market Operator System (SPPA) services.

(Writer: Ade Miranti Karunia | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2021/07/15/193015526/tiga-perusahaan-teknologi-bakal-ipo-valuasinya-ditaksir-capai-rp-3045-triliun.