BEI Socializes the Importance of PUPS for Every Company in Indonesia

INDUSTRY.co.id - Jakarta - The implementation of Initial Public Offering (PUPS) for each company is very important. That's a sign that the company changed its status into a public company, aka go public.

If there are companies that avoid going public, it means that the owner or manager of the company does not want to face a better future, said Tito Sulistio, President Director of Indonesia Stock Exchange (IDX).

Tito disclosed this in a dialogue on Perpu No. 1 of 2017 on Access to Financial Information for the interests of taxation for issuers, securities, banks and foreign companies. The dialogue was conducted BEI with Indonesian Chamber of Commerce (Kadin) at BEI Building, South Jakarta, on Friday (06/10/2017).

Tito argued, every company in Indonesia for future business development direction should have a go public orientation. Therefore, companies that are members of Kadin are expected to go public.

The reason that often hinders companies to go public is because of the concern for large capital, minder because they feel the company is still a small company, to worry about redenomination in the future, said Tito.

Tito gives an example of how Kioson, a start-up company, which only assets Rp35 billion but managed to go public and grabbed additional funds up to Rp45 billion. Kioson is the 24th company that became the BEI issuer this year.

Until now, as Tito, Kioson still lose money. But interestingly, investors see the potential of the company in the future so that its PUPS oversubscribed up to 13 times and its shares immediately rose 50% when transacted on the BEI floor.

Therefore, Tito encourages companies that become members of Kadin will want to go public.

We will provide red carpet for kadin member companies who want to conduct the Initial Public Offering of Shares in Indonesia Stock Exchange, Tito concluded. (Abraham Sihombing)