Indonesia has recently emerged as a major listing venue, surpassing other global stock markets such as Tokyo and London. According to reports, the Southeast Asian market recorded a staggering $1.45 billion in initial public offering (IPO) proceeds between January and March of this year alone.
This is the highest-ever first-quarter tally for Indonesia's IPOs, which is nearly twice the amount raised in Hong Kong during the same period. The surge can be attributed to several successful listings on its stock exchange, including e-commerce firm Bukalapak's $1.5 billion IPO last year.
Despite a global slump in IPO proceeds down by more than 60% year-on-year globally and for Asia Pacific regions, Indonesia managed to buck the trend by attracting investors with its strong economic growth prospects.
At least two more significant offerings larger than $500 million each are expected to price early this April - Garuda Maintenance Facility AeroAsia and Bank Jago.
According to experts, Jakarta’s benchmark index surged over 2%, driven mainly by optimism towards these upcoming deals' success. This latest development highlights investors' confidence towards Indonesia's economy amidst pandemic-induced financial uncertainty worldwide.
"Indonesia has been able to achieve an impressive feat despite challenging circumstances caused by COVID-19," noted one analyst from DBS Group Holdings Ltd., "The country continues to remain attractive due to its young population demographic."
As of late March 2021, there were already six Indonesian companies listed with total funds raised nearing $4 billion - making it one of Asia's top performers so far this year. With investor interest on an upward trajectory, many speculate that Indonesia will continue experiencing robust growth in its capital markets sector throughout 2021.