Cikarang Lifts hope for Indonesian ECM

摘要

Indonesian equity offerings are picking up pace again as issuers bow to investor demands for lower valuations to compensate for volatile market conditions. Independent power producer cikarang listrindo was poised last week to price an IPO of up to Rp3.61trn (US$267m) near the bottom of its target range after narrowing guidance to attract wavering investors. While the IPO pipeline remains thin, bankers hope a successful Cikarang float brings more issuers into the market. Some are also optimistic that an expected local rate cut will lead to more block trades. Already, contract researcher prodia has hired Citigroup, Credit Suisse and IndoPremier Securities for a US$100m IPO scheduled this year. Property developer ciputha residence is also likely to launch a delayed US$200m IPO this year.