The Indonesian Stock Exchange (BEI) of North Sumatra (Sumut) stated that around 40 companies have the potential to go public on the stock exchange by conducting an initial public offering (IPO).
“That number is based on research that we conducted,” said Head of BEI North Sumatra Representative Muhammad Pintor Nasution as reported by Antara, Thursday (25/7).
Pintor continued, these companies actually already have sufficient requirements to enter the stock exchange, both in terms of finance and good corporate governance (GCG).
He said, companies with great potential generally come from the palm oil industry sector. “In addition, there are from other sectors, including seafood processing,” said Pintor.
In order for the companies to agree to the IPO, Pintor said that BEI North Sumatra had met with their top brass one by one. However, the companies have not given certainty about the IPO, for several reasons.
According to Pintor, there are two reasons that companies usually give for postponing or rejecting the idea of an IPO, namely, first, the disagreement of shareholders.
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“This shareholder system is not like a 2/3 decision-making meeting. To enter the stock exchange, all shareholders must agree. If just one rejects, it is not allowed,” said Pintor.
Then, secondly, he said companies usually do not want their financial reports to be known to the public. “In fact, the purpose of an IPO is so that everything is transparent,” he said.
In North Sumatra, as of April 2023, there are 12 North Sumatra-based companies that have carried out initial public offerings (IPOs), one of which issued bonds, based on records from the Financial Services Authority (OJK).
In 2024, Pintor said there will likely be only one additional company that will go public. The healthcare company that operates in the hospital business is expected to go public in August 2024.
“In the future, it seems that Bank Sumut will reschedule the IPO for 2025. For the others, I cannot give any clues yet,” Pintor also said. (Z-6)
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