The Listing Board on the Indonesian Stock Exchange (IDX) consists of four different boards. The listing board or trading board functions to classify a company when it first lists on the Exchange.
Currently there are four categories of listing boards on the Indonesia Stock Exchange, namely main boards, development boards, accelerated boards and new economic boards. The Exchange routinely evaluates the company’s fundamentals, this allows adjustments to the listing board of an issuer listed on the Exchange.
Main Board
The IDX is starting to enforce regulation number I-A in 2021 which adjusts the requirements for issuers to be listed on the main board. This regulatory change is expected to support funding through the Indonesian capital market, as well as to realize an orderly, fair and efficient securities trading by keeping abreast of market developments.
The Main Board contains large-scale shares with total assets of more than IDR 250 billion. Tangible assets such as land, buildings, machinery and equipment must have a minimum value of IDR 100 billion or more.
The shares on the main board must have posted a profit when they entered the stock exchange. The issuer must have audited financial statements for the last three years with an unmodified opinion.
The lowest price limit that can be reached by the shares on the main board is IDR 50/share.
Requirements for listing on the Main Board:
– Limited liability company (PT) legal entity status
– Operational period with bookkeeping of business income ≥ 36 months.
– Generate operating profit at least in the last 1 year.
– Have audited financial statements for at least the last 3 years.
– Meet one of the following conditions:
- Have profit before tax in the last 1 (one) financial year and Net Tangible Assets of at least IDR 250,000,000,000.00 (two hundred and fifty billion rupiah);
- Have accumulated profit before tax in the last 2 (two) financial years of at least IDR 100,000,000,000.00 (one hundred billion rupiah) and Share Capitalization Value of at least IDR 1,000,000,000,000.00 (one trillion rupiah) at the time before the date of Recording ;
- Have business income in the last 1 (one) financial year of at least IDR 800,000,000,000.00 (eight hundred billion rupiah) and Share Capitalization Value of at least IDR 8,000,000,000,000.00 (eight trillion rupiah) before the date of listing;
- Have total assets in the last 1 (one) financial year of at least IDR 2,000,000,000,000.00 (two trillion rupiahs) and share capitalization value of at least IDR 4,000,000,000,000.00 (four trillion rupiahs) before the date of listing; or
- Have cumulative cash flow from operating activities in the last 2 (two) financial years of at least Rp. 200,000,000,000.00 (two hundred billion rupiah) and Share Capitalization Value of at least Rp. 4,000,000,000,000.00 (four trillion rupiah) at the time of before the date of listing.
– The number of Free Float Shares after the Public Offering, or for a Public Company in the period of 5 (five) Exchange Days prior to the Listing application, is at least 300,000,000 (three hundred million) shares and fulfills the following conditions:
- At least 20% of the number of shares to be listed on the Exchange, for a Prospective Listed Company that has an equity value before the Public Offering of up to IDR 500,000,000,000.00 (five hundred billion rupiahs);
- At least 15% of the number of shares to be listed on the Exchange, for Prospective Listed Companies that have an equity value before the Public Offering of more than IDR 500,000,000,000.00 (five hundred billion rupiah) up to IDR 2,000,000,000,000.00 (two trillion rupiah); or
- At least 10% of the number of shares to be listed on the Exchange, for Prospective Listed Companies that have an equity value before the Public Offering of more than IDR 2,000,000,000,000.00 (two trillion rupiahs)
– The minimum number of shareholders is 1,000 parties with a minimum initial share price of Rp. 100
– Form of guarantee Full Commitment
Development Board
The development board contains medium and large stocks. Based on POJK No. 53/POJK.04/2017 medium-scale companies are those whose assets are between IDR 50 billion and IDR 250 billion. While the large-scale is greater than IDR 250 billion.
Companies may list their shares on the development board even though they are still at a loss. It’s just that the operating profit and net profit must be positive in the second year since the shares are listed on the stock exchange. Issuers must also have audited financial statements for at least the last 12 months with an unmodified opinion.
The lowest price limit that can be reached by the shares on the development board is IDR 50/share.
The requirements for the listing of Development Board shares are as follows:
– Limited liability company (PT) legal entity status
– Minimum operational period of 12 months
– The company may not yet generate profits provided that the projections for the 2nd to 6th year produce operating profit
– Have audited financial statements for at least the last 1 year with unmodified opinion
– Meet one of the following conditions:
- Have finances in the form of net tangible assets of at least IDR 50 billion
- Have accumulated profit before tax in the last 2 (two) financial years of at least IDR 10,000,000,000.00 (ten billion rupiah) and share capitalization value of at least IDR 100,000,000,000.00 (one hundred billion rupiah) before the date of listing ;
- Have business income in the last 1 (one) financial year of at least IDR 40,000,000,000.00 (forty billion rupiah) and share capitalization value of at least IDR 400,000,000,000.00 (four hundred billion rupiah) before the date of listing ;
- Have total assets in the last 1 (one) financial year of at least IDR 250,000,000,000.00 (two hundred and fifty billion rupiah) and Share Capitalization Value of at least IDR 500,000,000,000.00 (five hundred billion rupiah) at the time before Recording date; or
- Have cumulative cash flow from operating activities in the last 2 (two) financial years of at least Rp. 20,000,000,000.00 (twenty billion rupiah) and Share Capitalization Value of at least Rp. 400,000,000,000.00 (four hundred billion rupiah) in prior to the Recording date.
– Provisions for free float shares after a public offering or for a Public Company within 5 (five) trading days prior to the request for listing of at least 150 million shares and meet the following conditions:
- At least 20% of the number of shares to be listed on the Exchange, for a Prospective Listed Company that has an equity value before the Public Offering of up to IDR 500,000,000,000.00 (five hundred billion rupiahs);
- At least 15% of the number of shares to be listed on the Exchange, for Prospective Listed Companies that have an equity value before the Public Offering of more than IDR 500,000,000,000.00 (five hundred billion rupiah) up to IDR 2,000,000,000,000.00 (two trillion rupiah); or
- At least 10% of the number of shares to be listed on the Exchange, for Prospective Listed Companies that have an equity value before the Public Offering of more than IDR 2,000,000,000,000.00 (two trillion rupiahs)
– The minimum number of shareholders is 500 parties with a minimum initial share price of Rp. 100
– Form of guarantee Full Commitment
Acceleration Board
Acceleration Board is a Listing Board provided to list shares of Issuers with Small Scale Assets or Issuers with Medium Scale Assets as referred to in the Financial Services Authority Regulation (POJK) Number 53/POJK.04/2017.
Companies may list their shares on the acceleration board even though they are still making a loss, alias they have not recorded a profit. It’s just that the condition is that the company must be able to project its operating profit and net profit to be positive maximum in the sixth year since its shares are listed on the stock exchange.
The listing requirements for Acceleration shares are easier than the listing requirements on other boards. Among them:
– Limited liability company (PT) legal entity status
– Operational period since its establishment
– The company may not yet generate operating profit provided that the maximum projection for the 6th year has generated operating profit
– Issuers must have audited financial statements for at least the last 12 months with an unmodified opinion
– There is no financial size that must be met
– The number of shares offered to the public is at least 20% with a minimum initial share price of Rp. 50 and the minimum number of shareholders is 300 parties
– Form of best effort guarantee
When conducting an IPO/initial offering of shares for the first time, the offering price for shares on the accelerated board must be above IDR 50 per share. However, after that the price was completely left to the market mechanism. If capital market players feel that the price of Rp. 50 is too high, the shares can be traded down to Rp. 1 share.
The lowest limit for accelerated shares is indeed IDR 1 per share, but there is no upper limit. The top auto reject (ARA) and bottom auto reject (ARB) systems are currently at 10% each
New Economy Board
Based on the Press Release issued by the Exchange No: 086/BEI.SPR/12-2022 On Monday 5 December 2022, the Indonesia Stock Exchange (IDX) launched a new listing board, namely the New Economy Board. It aims to provide a listing board for technology-based companies to create product and/or service innovations, which have broad social benefits with high growth rates.
The New Economy Board is a listing board which is equivalent to the main board. A company can be listed on the New Economy Board if the company fulfills the conditions for being listed on the Main Board and has special characteristics determined by the Exchange. These special characteristics include:
- Have high revenue growth
- Using technology to create product or service innovations that increase productivity and economic growth and have social benefits; as well as
- Enter the business field determined by the Exchange.
The New Economic Board also accommodates the listing of companies that have a Share with Multiple Voting Rights (SHSM) scheme as stipulated in POJK Number 22/POJK.04/2021 concerning Application of Classification of Shares with Multiple Voting Rights by Issuers with Innovation and High Growth Rates Conducting Public Offerings Equity Securities in the Form of Shares. Each share of SHSM has more than 1 voting right for shareholders who meet the requirements, in contrast to ordinary shares which each share only has 1 voting right.
There are two special notations for shares listed on the New Economic Board, namely:
- Special Notation “K” which means the company implements SHSM and is listed on the New Economic Board
- Special Notation: “I” which means the company does not implement SHSM and is listed on the New Economic Board
Examples of companies listed on this board are GOTO, BUY and OPEN
The following is the Listing Board at the Indonesia Stock Exchange. As of 2023, a new listing board appears, namely the Special Monitoring Board. Check our next article. Hopefully this information can help you to find out more about the Listing Board on the Indonesia Stock Exchange.
Abstracted by: Dody Arifianto
Arranged by: Lavy El Harisy