A flurry of initial public offerings (IPOs) planned for December and early 2013 highlight how firms in Indonesia are trying to harness bullish domestic and global confidence to fund plans for expansion.
Currently leading the pack is Indonesia AirAsia, whose planned IPO hopes to raise some Rp1.7trn ($175.78m) in early 2013. The aviation firm is closely followed by state-owned plantation firm Perkebunan Nusantara’s Rp1.5trn ($155.1m) listing, also scheduled for 2013, and state-run construction company Waskita Karya’s Rp1.2trn ($124.08m) December IPO.
The Indonesia Stock Exchange (IDX) saw two IPOs in December, bringing the total number of listings for 2012 to 23. This is down on the 24 IPOs seen in 2011, but continues to underline international sentiment over the vast archipelago’s private equity prospects.
A survey conducted by private equity firm Coller Capital saw nascent Asian economies, such as Indonesia and Vietnam, favoured by one-fifth of investors over the more mature markets found in other Asian countries, including China and India.
Northstar Pacific Partners, a local partner of global investor TPG Capital, for example, raised $800m in 2011 to invest in Indonesian companies. Other large firms, such as Starwood Capital Group, are circling in search of deals, according to reports from the Wall Street Journal.
