Internal Restructuring
A. Pre-IPO value enhancement requires an understanding of the following issues:
- Improvement of operational and financial performance;
- Improvement of the Company’s current condition;
- Eligibility of IPO;
- Investors’ interest in the industry;
- Investors’ considerations in similar companies;
- The following steps are formulated based on the above data;
- Positioning and updating of the Company’s investment story.
B. By conducting a study and analyzing the aforementioned issues, the Company will be able to carry out restructuring and improvement programs, which are expected to enhance the value of the Company.
C. Restructuring results must be reflected in the “subsequent event” section of the audited financial statements.
D. Restructuring results must be reflected in the projection and business plan, and the use of proceeds from the IPO is an important factor to consider.
Capital
Important items to be noted
A. Number of new shares issued
- IDX rule: free float at least 7.5% of enlarged capital.
- Investors/market prefer free float around >30%, due to liquidity reasons.
B. Increase in authorized capital (if required)
- Objective: to provide space for Rights Offering in the future.
- It is possible to increase up to 4 times of Paid-in and Issued Capital.
C. Nominal Value
- Increase the number of shares for stock liquidity.
- The nominal value is typically IDR 10,-; IDR 100,-; IDR 250,-; or IDR 500,-
- There is no minimum nominal value of IPO under Exchange Regulations I-A and I-V.
D. Floating Shares
- Number of shares owned by non-controlling and non-main shareholders during five Trading Days preceding the application for Listing on the Main Board and Developer Board.
- Number of Floating Shares owned by non-controlling and non-mainstream shareholders.