A 10,000% jump makes Indonesian firm world’s top IPO


DCI’s stellar performance is another example of the frenzied trading in Indonesian technology stocks this year.

JAKARTA (Bloomberg): A cloud data service provider partly owned by an Indonesian tycoon has delivered the world’s best-performing initial public offering this year, jumping more than 100 fold since its share float in January.

PT DCI Indonesia has soared 10,852% since its 150 billion rupiah (US$10.5 million) listing on Jan 6. That makes the firm the top gainer in Indonesia’s stock market and the second-biggest contributor to the Jakarta Composite Index’s 12% gain this year.

DCI’s stellar performance is another example of the frenzied trading in Indonesian technology stocks this year, with a key gauge of the sector having surged nearly four fold since its launch in late January. However, there’s caution about how much investors should read into it given the stock’s scant trading and lack of research coverage by brokerages.

"The data center industry is a beneficiary of the e-commerce and digital economy boom in Indonesia,” said Henry Wibowo, head of research at JP Morgan Sekuritas Indonesia. Wibowo said he doesn’t cover the company because "the stock is not liquid.”

DCI is 11% owned by Indonesian billionaire Anthoni Salim, whose business empire spans from food to telecommunications to real estate.

The stock’s sharp gains have triggered periodic trading suspension and an investigation by stock exchange officials into the firm for possible manipulation of transactions earlier this year.

The Indonesia Stock Exchange has completed the probe, the bourse’s transaction supervision and compliance director said in written response to queries from Bloomberg News earlier this week, without elaborating.

"Based on the results of the stock exchange inspection, there is no indication of any violations by the company,” DCI’s corporate secretary Nicholas Suharsono said in written response to questions from Bloomberg.

Article type: free
User access status:
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Indonesia , cloud , data , service , PT DCI , stock , IPO

   

Next In Aseanplus News

Asean News Headlines at 10pm on Monday (Jan 24, 2022)
Singapore: Children aged 5 to 11 can walk in with parents for Covid-19 vaccination without appointment
Philippines logs 24,938 new Covid-19 cases on Monday; total infections now at 3,442,056.
Indonesia reports 2,927 new Covid-19 cases, seven more deaths on Monday (Jan 24)
Thailand: Bangkok gets ready to welcome foreign visitors from Feb 1 as Covid-19 cases are getting lesser
Vietnam reports 14,362 new Covid-19 cases and now 2,155,784 infections in total on Monday (Jan 24)
Overworked in Singapore: Study shows one in two logs extra hours since Covid-19 pandemic started - A Straits Times Special
Indonesia starts construction of US$2.3 billion coal gasification plant to cut LPG imports
Singapore PM Lee and Indonesia President Jokowi to meet in Bintan for first Leaders' Retreat since 2019
Philippines: Covid-19 cases in Metro Manila already peaked, says Duque

Others Also Read


Vouchers