Reflecting on HongKong and Singapore, Indonesia Stock Exchange Embraces Unicorn IPO
The Indonesia Stock Exchange (IDX) has a strong determination to continue to embrace the Initial Public Offering (IPO) with Unicorn status as a leading technology company in Indonesia. BEI will look in the mirror from Hong Kong and Singapore in order to pursue and prosper in their own country.
The head of the IDX’s startup and SME development unit, Aditya Nugraha, said that the IDX did not want to experience bad risks like those experienced by the Hong Kong Stock Exchange (HKEX) and the Singapore Stock Exchange (SGX).
The reason is that both of them have lost their best momentum to get closer to the Unicorn IPO. Therefore, IDX began to learn so that future plans always run smoothly.
“The failure is an important guideline for us. This means that IDX must not be weak in pursuing Unicorn IPOs so that they do not run listings for other countries,” Aditya said at the Unicorn IPO meeting, Wednesday (28/07/2021).
Causes of Unicorn IPO Failure
Aditya also continued that there were many cases that led to the failure of the Unicorn IPO. Where one of them is that several stock exchanges in the country are not able to collaborate well with companies with Decacorn status, Unicorns to Startups.
In addition, they also made a fatal mistake by not entering into a policy agreement regarding Multiple Voting Shares (SHSM) or Multiple Voting Shares (MVS).
“My assessment is that all stock exchanges in Indonesia must balance the implementation of MVS or SHSM to improve the long-scale cooperation process,” said Aditya.
The Most Fatal Loss of Momentum
Initially SGX was better than BEI. However, they were not able to maintain the golden opportunity that appeared in the American Depositary Receipt (ADR). With the scheme they are running, it is noted that the value of the offer has changed to US$884.4 million since October 20, 2017.
Meanwhile, SGX was only able to run MVS in June 2018. And that happened when SEA Ltd’s market capitalization grew by 1,000% on the New York Stock Exchange (NYSE).
Meanwhile, HKEX has lost momentum with Alibaba Group since September 18, 2014. This happened because Alibaba used the ADR scheme on the NYSE. They are involved in bidding up to 21.8 billion US dollars.
Ironically, HKEX had to wait 4 years to join the MVS and Secondary Listing program. And it just happened on September 18, 2018.
IDX Development Against MVS
The Head of the Prospective Development Unit for IDX 2 Listed Companies, Bima Ruditya Surya, spoke about the IDX’s development of MVS. He began to explain the various IDX development plans in order to balance the MVS program.
Until now, IDX has contacted the Financial Services Authority (OJK) to make an agreement on the Draft Financial Services Authority Regulation (RPJOK) regarding the SHSM issue.
According to the Rule-Making-Rule (RMR) process which has been set since June 2021, there are several things that they have mutually agreed upon, namely;
The first is to have mandatory requirements to improve the SHSM program. Where the IDX is a worthy category to embrace the Unicorn IPO.
The second is having eligibility for SHSM holders which is taken from a joint decision. And finally, there are a number of provisions for making MVS that it is not a permanent effort.
Even so, Bima insisted that the steps they had built would not be detrimental in the future. Like many cases that have happened, some people who are seen are actually wasting money just to bet on real money soccer gambling on trusted soccer sites.