Going public is one way for companies to get funding and a more prestigious status. In this discussion, we will discuss the requirements for companies to be able to conduct an initial public offering in the capital market or initial public offering. In the stock exchange, there are several types of stock listing classifications, namely shares listed on 1. Main board 2. Development board, and the latest is 3. Accelerated board.

TGS Indonesia Team, consisting of public accountants registered in the capital market and other supporting professions, we have experience in assisting the preparation of companies to go public through KAP Agus Ubaidillah dan Rekan professional services.

Main Board

The Main Board is a listing board that is reserved for listing the shares of large companies that have a long operational experience. Examples of companies listed on the main board include Astra Agro Lestari Tbk, Adaro Energy Tbk, Aneka Tambang Tbk, Astra International Tbk and Sepatu Bata Tbk.

The conditions that must be met by the company to be able to conduct an IPO (company requirements for IPO) on the main board are as follows:

  1. Company structure/corporate governance

  • Legal entity is a Limited Liability Company

  • Corporate governance structure, namely there are independent commissioners (at least 30%)

  • Audit committee, internal audit unit, and company secretary.

  1. Operations, finance and assets

The requirements for going public or IPO to be listed on the main board are related to the company's operational, financial and asset years, as follows:

  • The company must have been in operation for 36 months (booked operating revenue)

  • Recorded operating profit for more than 1 year

  • The financial statements of the last three years have been audited with an unmodified opinion (two years) by a public accountant registered as a Capital Market Accountant

  • Total net tangible assets of the company are above Rp 100 billion.

  1. Share composition structure

The number of shares is at least 300 million shares, shareholders are at least 1000 parties, the share price is at least Rp 100 per share, with the percentage of shares that must be released to the public is as follows:

Development Board

The Development Board is a listing board reserved for the listing of shares of medium-sized companies that are expected to grow and are not currently eligible to be listed on the Main Board.

The conditions that must be met by the company to be able to conduct an IPO (company requirements for IPO) on the development board are as follows: 

  1. Corporate structure/corporate governance

Legal entity is a Limited Liability Company, in the company structure there are independent commissioners (minimum 30%), audit committee, internal audit unit, and company secretary.

  1. Operations, finance and assets

The requirements to go public or IPO in order to be listed on the development board in relation to the company's operational, financial and asset years, are as follows:

  • The company must have been in operation for 12 months (booked operating revenue).

  • Companies that record losses are allowed as long as they are in line with projections and by the end of the second year of listing have recorded operating profit and net profit

  • The financial statements for the last one year have been audited with an unmodified opinion by a public accountant registered as a Capital Market Accountant.

  • Total net tangible assets of the company are above Rp 5 billion, or; operating profit above 1 billion and market capital above 100 billion, or; revenue above 40 billion and market capital above 200 billion. 

  1. Share composition structure

The number of shares is at least 150 million shares, shareholders are at least 500 parties, the share price is at least Rp 100 per share, with the percentage of shares that must be released to the public is as follows:

  • Total equity below Rp 500 billion is 20%

  • Total equity between Rp 500 billion and Rp 2 trillion, 15%

  • Total equity above Rp 2 trillion is 10%

Accelerated Board

The Accelerated Board is a Listing Board provided for listing the shares of Startup Companies. The Acceleration Board is intended for Issuers with Small Scale Assets or Issuers with Medium Scale Assets as referred to in the Financial Services Authority Regulation Number 53 /POJK.04/2017 that have not been able to fulfill the requirements on the Development Board.

The benefits of a company's shares being listed on the accelerated board are:

  1. Greater access to capital

  2. Encourage business expansion

  3. Encourage more professional corporate governance so as to increase the value and fundamental aspects of the company.

The conditions that must be met by the company to be able to conduct an IPO (company requirements for IPO) on the accelerated board are as follows: 

  1. Company structure/corporate governance:

  • Legal entity i.e. Limited Liability Company

  • The corporate governance structure is:

  • Independent commissioner

  • Audit committee, internal audit unit, and

  • Company secretary 

With a transition period of 6 months for companies with medium-sized assets and 1 year for small-scale assets.

  1. Operations, financials and assets

The requirements for going public or IPO to be listed on the Accelerated Board in relation to the company's operational, financial and asset periods are as follows:

  • The company may be listed on the accelerated board from the time the company is officially established.

  • The company can be loss-making as long as it is in line with projections and by the end of the sixth year of listing it has been able to book operating profit and net profit

  • The financial statements of the last one year have been audited or since its establishment (if less than 1 year of establishment) with a fair opinion without modification by a public accountant registered as a Capital Market Accountant

  • There is no minimum standard value of financial measures (revenue, profit, and assets) 

  1. Share composition structure

The number of shares is at least 20% of total ownership, shareholders are at least 300 parties, and the share price is at least Rp 50 per share.

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