Indonesian technology giants Bukalapak, GoTo, and Blibli have migrated from the main board to the new economy board launched by the Indonesian stock exchange (IDX) on Monday.
DealStreetAsia had earlier reported that the new economy board will launch on Dec 5, 2022.
Clarifying that the new economy board is not intended to send out a negative message about companies listed on the board, Jeffrey Hendrik, IDX’s development director, said in a media briefing on Monday, “It is our way of protecting retail investors; we have simply put up a special notation for the companies on the board.”
While notation ‘K’ will be used for companies that have implemented multi voting shares (MVS), notation ‘I’ will be for companies that have not implemented MVS.
IDX’s head of business development division, Ignatius Denny Wicaksono, said the new economy board will not reduce the prestige of companies listed on the main board but ensure that the unicorn companies (startups with valuation over $1 billion) are treated on a par with them.
Brought under one specific board, retail investors and analysts will be able to compare the companies with specific metrics and adjust the specific time horizon investments that are different from companies on the other boards, he added.
Not only e-commerce companies
All the three companies currently included on the board belong to e-commerce. However, Wicaksono assured that other companies in special business sectors such as autonomous technology and industrials, genomics or biomedicine, fintech, next-generation internet (5G), cloud computing and big data, cyber security, future cars and video gaming are also welcome to list on the board.
Just like their peers on the main board, members of the new economy board are also required to meet Rule IA that requires a listed company to either show earnings before tax (EBT) and net tangible assets (NTA) above 250 billion rupiah; EBT accumulation of 100 billion rupiah; revenue worth 800 billion rupiah and market capitalisation worth 8 trillion rupiah; assets worth 2 trillion rupiah and market capitalisation worth 4 trillion; or cash flow from operations (CFO) of 200 billion rupiah over the last two years.
The members of the new economy board are required to have high revenue growth — an average of 30% in the last three years to join the board and an average of 20% in the last four years to stay on the board.
IDX will review the members of the new economy board twice a year (May and November) and move them to other boards if they fail to meet the requirements. Currently, IDX has the main board, development board, and acceleration board.
Blibli’s spokesperson and some analysts said the stocks of Blibli and other giant technology companies will not be significantly affected after moving to the economy board. “Most investors look at their fundamentals before investing, not because they are in the specific indices or boards,” said Chandra Pasaribu, head of research Yuanta Sekuritas.
Niko Margaronis, analyst at BRI Danareksa Sekuritas, said the new economy board will definitely make price discovery faster, but retail investors will eventually see high volatility in stocks listed on the board. High-volatility stocks are considered to be more risky.