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Indonesia aims to launch rules on dual class shares this year -exchange official

Indonesia aims to launch rules on dual class shares this year -exchange official

FILE PHOTO: A worker wearing a protective mask walks as he cleans the floor past an electronic board displaying the stock market index at the Indonesia Stock Exchange (IDX), as the outbreak of the coronavirus disease (COVID-19) continues, in Jakarta, Indonesia, September 8, 2020. REUTERS/Willy Kurniawan

SINGAPORE : Indonesian authorities are discussing new guidelines on topics such as dual classes of shares for companies, with the measures likely to be rolled out this year, a stock exchange official said on Friday.

The comments come as bankers and investors expect a wave of listings on the Indonesia Stock Exchange (IDX) over the next couple of years, led by tech firms https://www.reuters.com/world/the-great-reboot/southeast-asia-tech-dealmaking-booms-investors-place-post-covid-bets-2021-08-27 that have benefited as consumers flocked to digital platforms during the pandemic.

Indonesian authorities are trying to sort out issues related to the ratio of voting rights and the duration of such rights, among others, said Pandu Sjahrir, a commissioner at IDX.

"There are a couple of key things that people are looking at - the (ratio of) voting rights ... and how long the founders' shares last," Sjahrir said at DealStreetAsia's PE-VC Summit 2021.

The launch was taking time as the exchange worked with authorities to ensure investor protection upon introduction of the rules, which will also ease curbs on loss-making firms, among other steps, he said at the event.

The flurry of investor activity led to Indonesia's biggest listing, with e-commerce firm Bukalapak making its debut https://www.reuters.com/business/retail-consumer/bukalapak-indonesias-biggest-ipo-up-25-blockbuster-debut-2021-08-06 in August after raising US$1.5 billion.

That month Reuters reported Indonesia's Financial Services Authority was weighing new listing guidelines for tech firms to offer dual-class shares with different voting rights.

Reuters also reported on a pre-IPO funding exercise https://www.reuters.com/technology/indonesias-goto-set-wrap-up-2-bln-funding-round-eyes-ipo-2022-sources-2021-08-19 by Indonesia's biggest tech group, GoTo, to raise up to US$2 billion, but said regulatory delays threatened to push the listing plans to early next year.

(Reporting by Anshuman Daga; Editing by Clarence Fernandez)

Source: Reuters

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