The Latest IPOs in First Quarter of 2021, What to Look For?
Eleven companies went public on the Indonesian Stock Exchange this first quarter of 2021. From mining companies, palm oil plantations, to computer manufacturers, these companies recorded their first shares in the market to obtain fresh capital from investors.
PT Ulima Nitra Tbk (UNIQ) offered the highest dividend policy from net profit at 40%. This company, which is located in South Sumatera, is engaged in mining services and mining equipment leasing services, especially for oil, natural gas, and coal mining industries. The company reported a stable net profit at Rp17 billion in both 2018 and 2019.
Next, four companies offered 30% dividend payout ratio: PT Fap Agri Tbk (FAPA), PT Diagnos Laboratorium Utama Tbk (DGNS), PT Widodo Makmur Unggas Tbk (WMUU), and PT Berkah Beton Sadaya Tbk (BEBS). Among these companies, Widodo Makmur Unggas is the only one that reported a significant growth in net profit at more than 600%, amounting to Rp36 billion in 2019 from the previous year. Meanwhile, FAP Agri experienced a loss of Rp240 billion in 2019, though they also reported an even bigger loss the previous year.
PT Damai Sejahtera Abadi Tbk (UFOE) and PT Sunter Lakeside Hotel Tbk (SNLK) both offered 25% payout ratio to investors. However, Damai Sejahtera Abadi reported net profit growth at Rp5.25 billion, while Sunter Lakeside Hotel recorded a big loss at Rp1.24 billion. Even though it experienced losses during the pandemic, Sunter Lakeside Hotel gained profit as reported in September 2020 after they revaluated Hotel Sunter They also planned to make use of the fresh fund to convert 100 rooms into long-stay rooms, as the demand for it keeps increasing.
20% payout ratio is offered by three Information Technology related companies in this quarter: PT DCI Indonesia Tbk (DCII), PT IndoInternet Tbk (EDGE), and PT Zyrexindo Mandiri Buana Tbk (ZYRX). Interestingly, all these companies reported a net profit increase in 2019. DCI Indonesia, a data center provides company, reported 73% net profit growth at Rp106 billion in 2019. IndoNet, the brand of IndoInternet, also recorded Rp102 billion net profit in 2019, or an increase of 40% from the previous year. Zyrex, one of the Indonesian computer manufacturers, reported a loss in 2018 but successfully gained a net profit of Rp8.23 billion in 2019.
The last company that went IPO in this quarter is PT Bank Net Indonesia Syariah Tbk (BANK), that recently changed their name to Bank Aladin Syariah in April 2021. This bank offered the lowest payout ratio among the eleven companies at 10%. Impressively, the company reported Rp77.3 billion of net profit in 2019, after experiencing an Rp64.7 billion loss in the previous year. They planned to use the capital gained in the stock market as working capital and maintenance of information technology devices. (KD)