e-IPO

e-IPO or Electronic Indonesia Public Offering is an electronic means to support the initial public offering process to the public. Before the Company's shares are listed and start trading on the Indonesian Stock Exchange, there is a process which we often know as an IPO or Initial Public Offering or Public Offering. This IPO or public offering is a process of offering initial shares to the public (primary market), where interested investors can place orders for shares offered on the primary market. After the initial public offering process, the Company's shares are listed on the Stock Exchange, and these shares can be traded on the Indonesia Stock Exchange (secondary market).

With this e-IPO, it is hoped that the public offering process through e-IPO can provide benefits including: 

1. Providing broad and easy access for retail investors in particular to participate in the Primary Market, where previously retail investors had limited access to participate in primary market share orders;
2. Increasing opportunities for retail investors to obtain initial share allocation; as well as
3. Expanding the participation of Securities Companies as Selling Agents in a public offering process through e-IPO, thereby expanding opportunities for all investors to participate in a public offering

Stages in a Public Offering Via E-IPO

1. Publication (Pre-effective)
   After the Company obtains publication permission or a Pre-effective Statement from the Financial Services Authority, the Company can then begin the publication stage and display information on the public offering of shares offered on the e-IPO website. Complete information regarding the Issuer or Company conducting a public offering can be found in the prospectus which can be downloaded at e-IPO.
2. Bookbuilding (Initial Offering Period)
   Bookbuilding or initial offering period is the stage where interest or offers submitted by investors via e-IPO during the initial offering period will be collected and become the basis for determining the initial offering price that will be used by the Company and Underwriters. Determining the Initial Offering Price After the bookbuilding period or initial offering period ends, the next process is that the Company and the Underwriter will determine the initial offering price of the shares offered.
3. Offering (Public Offering Period)                                                                                                                                 After the Company obtains an Effective Statement from the Financial Services Authority, the next process is to start the offering period or securities offering period. The initial share price or final price determined by the Company and Underwriter can also be seen in the e-IPO. The offering stage is the stage where investors can submit initial share orders according to the predetermined initial offering price. At this stage, if investor interest expressed during the initial offering period is lower than the final price, it will not be carried over to the securities offering period. Investors can submit orders again via e-IPO while the securities offering period is still ongoing. Meanwhile, if investor interest continues into the securities offering period, the investor must read the prospectus and confirm that they have read the prospectus.
4. Allotment                                                                                                                                                                      After the securities offering period ends, the next process is the allotment or allocation of securities based on orders submitted by investors.
5. Distribution                                                                                                                                                                  After the allotment stage in e-IPO, the securities distribution process is carried out to investors who place orders according to the allotment results.

Provider of Electronic Initial Public Offering (e-IPO) System in the form of IPO Settlement and Distribution

On July 1 2020, IDClear together with other SROs were appointed by the OJK as Electronic Initial Public Offering (e-IPO) System Providers. IDClear's role in the e-IPO system is to carry out the process of verifying the availability of funds for orders, settlement of ordered funds and distribution of securities for e-IPO activities. To obtain e-IPO services, AK is required to have an agreement with IDClear.

Fulfillment of order funds and distribution of securities up to investor level is carried out through a guarantee account (004) located at KSEI. IDClear validates the adequacy of order funds on H-2 from the recording date or on the last day of the offering period. Meanwhile, validation of the adequacy of guarantee funds and firm order funds for institutional customers is carried out on H-1 from the recording date or one day after the end of the offering period.

For distribution of IPO securities, the role of the Securities Administration Bureau (BAE) is only to distribute securities to Admin Participants (appointed Underwriters). Then, the DVP (delivery versus payment) mechanism will be carried out for these securities with IDClear so that IDClear distributes the securities to collateral accounts and Sub-Guarantee Accounts (004) up to investor level. The obligation for issuers to use the e-IPO system has taken effect from January 1 2021 and Participants are required to make the necessary operational changes to their respective back office systems.

Since January 2 2023, IDClear together with BEI have provided instructions for COLDS Ordered Funds and COLW Remaining Funds. The Collateral Deposit (COLDS) instruction file was formed in order to make it easier for EIPO Participants to provide ordered funds in Sub Securities Accounts (SRE) and/or Main Securities Account (REU) 004 on the KSEI C-BEST system and the Remaining Collateral Withdrawal (COLW) instruction file for withdrawing the remaining ordered funds after the allotment process from SRE and/or REU 004 on the IDClear e-CLEARS system.

The use of the e-IPO system also aims to provide wider and fairer access and opportunities in ordering securities in IPO activities for the entire community as well as increasing transparency in the primary market.