Indonesia Expands Listing Criteria Options to Lure Startup IPOs

(Bloomberg) -- Indonesia is adding pretax profits, operational revenue, total assets, and market capitalization as optional listing criteria in a bid to encourage public offerings by startup companies. 

The expanded criteria, which took effect on Tuesday, will allow businesses in the new economy sector to raise funds from the capital market, the Indonesia Stock Exchange said in a statement. 

Indonesia Revamps Share Listing Rules to Lure Tech Giant IPOs

The bourse has also revised the requirements for publicly traded companies to remain listed in the main board:

• Effective on May 2, 2022, companies must not have a negative equity, have sufficient price to earnings per share ratio, or price to book value ratio, and must meet certain threshold of market capitalization in order to stay listed
• Effective from Dec. 21, 2023, listed companies are required to have more than 750 shareholders, sufficient amount of free floats, and no revisions to their financial statements in the last two consecutive years
• Effective on May. 2, 2025, companies must not book two consecutive years of net losses and record at least 20% in compound annual growth rate of revenue in the last 3 years
• Companies that breach the criteria have two years to fix their issues before any sanctions
• Any transfer of companies to the development board takes effect on May 2, 2022

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