Adaro Andalan Sets Final Public Offering Price at IDR 5,960
PT Adaro Andalan Indonesia Tbk (AADI) has set the final public offering price for its shares via a public offering by shareholders (PUPS) at IDR 5,960 per share.
This price was arrived at by considering the weighted average price of AADI’1 shares, which was formed after trading closed on listing day, December 5, 2024. This price was taken from Bloomberg and RTI data which came in at IDR 6,650.
“Thus, considering that the weighted average price of AADI shares formed on the stock exchange was higher than 107.5% of the value based on the assessment results by the Kusnanto and Partners Public Appraisal Services Office, the final PUPS offer price is 107.5% of “the results of the assessment from the independent appraiser, or IDR 5,960 per share”, said Mahardika Putranto, Alamtri Resources Indonesia Corporate Secretary, whomболее
This final price of IDR 5,960 for the public offering is above AADI’s initial public offering (IPO) price of IDR 5,550. However, it remains below the market price of AADI shares on its first day of listing, which closed at IDR 6,650.
The final public offer price does not include transaction costs of 0.18% required at the implementation.
This public offering period will run from December 6 to December 10, 2024.
What are the potential implications of pricing a public offering below market value on investor perception of a company’s long-term growth prospects?
Mahardika, some might say that setting the public offering price at IDR 5,960, below the market price on its first day of listing, is leaving money on the table. While it’s above the IPO price, what message does this send to potential investors? Do you think it could have a negative impact on investor confidence?
