Indonesia stock exchange eases rules to attract tech IPOs

  • 12/22/2021
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JAKARTA, Dec 22 (Reuters) - Indonesia"s stock exchange (IDX) has relaxed requirements for companies seeking to launch initial public offerings (IPOs), in an attempt to encourage more listings by startups. The change came as authorities seek to persuade the likes of GoTo Group, created through the merger of ride-hailing app Gojek and e-commerce company Tokopedia, to launch IPOs at home. The IDX said it had relaxed rules that previously required a minimum of 100 billion rupiah ($7 million) in net tangible assets and at least one year of profit to be able to launch an IPO directly on the main board at the bourse. In a regulation released late on Tuesday, the IDX said companies can now fulfil other qualifications in lieu of net tangible asset, such as by meeting a minimum operating revenue or total asset value, depending on their market capitalisation. The options were made available "to provide wider opportunities for companies, both conventional companies and companies with new economy characteristics, to be able to take advantage of the capital market," the bourse said. The changes follow new rules from Indonesia"s Financial Service Authority (OJK) earlier this month allowing multiple voting rights for technology companies. read more GoTo, Indonesia"s biggest tech firm, said last month it had secured more than $1.3 billion in the first close of its pre-IPO funding round. Two sources said the IPO could launch in the first half of next year. read more ($1 = 14,285.0000 rupiah)

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