IPO Boom in H2 2025 Draws Strong Demand, But Investors Urged to Stay Selective
Main Takeaways
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JAKARTA, Investortrust.id — Indonesia's IPO market has surged in the second half of 2025, with eight companies across sectors—ranging from logistics and education to medical devices and crypto assets—making their market debut nearly simultaneously.
The sharp increase in offerings highlights that companies remain eager to raise capital through public markets, even as overall market conditions continue to stabilize.
Over the past week through Wednesday, July 9, 2025, four companies went public: PT Pancaran Samudera Transport Tbk (PSAT), which saw 34.5 times oversubscription; PT Chandra Daya Investasi Tbk (CDIA), with a massive 563 times; PT Indokripto Koin Semesta Tbk (COIN), at 180 times; and PT Asia Pramulia Tbk (ASPR), with a more modest 1.53 times.
Four more listings were scheduled for Thursday, July 10: PT Trimitra Trans Persada Tbk (BLOG), PT Diastika Biotekindo Tbk (CHEK), PT Merry Riana Edukasi Tbk (MERI), and PT Prima Multi Usaha Indonesia Tbk (PMUI).
According to Stefanus Dennis Winarto, the chief investment officer at PT Inovasi Finansial Teknologi (Makmur), the surge in demand reflects strong investor appetite for new listings—an effect partly attributed to the Indonesia Stock Exchange (BEI) tightening its listing requirements.
“This move has helped improve the quality of companies going public and reinforced investor confidence,” Stefanus said on Thursday.
Despite the IPO enthusiasm, the broader market has shown only limited momentum. The Jakarta Composite Index (IHSG) edged up 0.57% to 6,943 on Wednesday, following a marginal 0.05% gain the day before. Meanwhile, foreign investors posted a net sell of Rp 383 billion.
Stefanus noted that several IPO stocks hit consecutive upper-limit price increases—known as auto reject atas (ARA)—in their early trading sessions. If the trend persists, the exchange may suspend trading or place the shares on its special monitoring board.
Valuation Disparities Highlight Need for Caution
Valuations across IPOs have varied widely. COIN, operating in the financial sector, had a relatively conservative valuation with a price-to-earnings ratio (PER) of 35.31x and a price-to-book value (PBV) of 1.01x—both well below the fintech sector averages of 92.16x and 4.21x, respectively.
In contrast, ASPR was priced significantly above its peers, with a PER of 61x versus a sector average of 26.8x, and a PBV of 1.9x compared to 0.8x—suggesting a premium valuation.
CDIA stood out as more attractively priced. The company recorded a PBV of 1.67x, far below the sector average of 22.25x, and a PER of 45.78x—also under the industry norm of 98.55x.
“Investors need to examine IPO prospectuses carefully and understand how the funds will be used,” Stefanus said.
“Not every IPO comes with compelling valuation or strong growth potential—some are already priced at a premium even before listing.”
Stricter Screening, Idle Capital Concerns
The Indonesia Stock Exchange has become more selective. Of 20 companies in the IPO pipeline as of late June, only 12 successfully made it to market by year-end. This suggests that only companies with strong fundamentals and complete documentation are now able to list.
High oversubscription rates have left many investors receiving only a small fraction of the shares they applied for. Without proper planning, the leftover funds could sit idle and generate no returns.
“For example, an investor might apply for Rp 200 million in shares but only be allotted Rp 1 million. That remaining Rp 199 million shouldn't just sit unused,” Stefanus explained.
He recommended placing unallocated IPO funds into fixed-income mutual funds (RDPT), which typically invest in government or corporate bonds and offer more stable returns and regular distributions.
“In cases like PSAT and CDIA, where demand was exceptionally high but supply was limited, parking excess funds in RDPT is a smart way to keep the portfolio productive while waiting for the next opportunity,” he said.
Such placements, he added, can be part of a sound risk management strategy to keep capital working with controlled risk.