No light at end of tunnel for Indonesia’s IPO market after dismal H1
Global economic uncertainty, high interest rates, and cautious investor sentiment following February’s presidential elections weigh heavily on the stock market
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[JAKARTA] Indonesia – last year’s global leader in initial public offerings (IPOs) – is bracing for a sharp drop in both the number and value of IPOs for the remainder of 2024 due to global economic uncertainty and high interest rates, according to Schroders Indonesia.
Uncertainty over upcoming policies in the wake of the country’s presidential elections in February is also causing investors to tread cautiously, said Irwanti, chief investment officer of Schroders Indonesia at a press briefing on Monday (Jul 8) on the market outlook for South-east Asia’s largest economy.
“This year’s IPO market is estimated to be smaller in terms of liquidity and size compared to last year. It’s quite challenging given that investors are now seeking IPOs with larger sizes and substantial free float liquidity,” she said.
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