New Delhi: A cloud data service provider partially owned by an Indonesian tycoon has made the world’s best-performing initial public offering this year, more than 100 times since its stock was issued in January.
PT DCI Indonesia has climbed 10,852% since its 150 billion rupee ($ 10.5 million) IPO on January 6. This makes the company the first winner in the Indonesian stock market and the second largest contributor to the Jakarta Composite Index’s 12% gain this year.
DCI’s exceptional performance is another example of the frenetic trading of Indonesian tech stocks this year, a key indicator of the sector having nearly quadrupled since its launch in late January. However, one should be careful about what investors should read given the stock’s limited trading and the lack of research coverage by brokerage firms.
“The data center industry is benefiting from the boom in e-commerce and the digital economy in Indonesia,” said Henry Wibowo, research manager at JP Morgan Sekuritas Indonesia. Wibowo said he was not hedging the business because “the stock is not liquid.”
DCI is 11% owned by Indonesian billionaire Anthoni Salim, whose business empire spans food, telecommunications and real estate.
The stock’s large gains sparked a periodic trading suspension and an investigation by stock exchange officials into the company for possible trade manipulation earlier this year.
The Indonesian Stock Exchange has completed the investigation, the exchange’s director of trading supervision and compliance said in a written response to Bloomberg News questions earlier this week, without giving further details.
“Based on the results of the stock market inspection, there is no indication of any breach by the company,” DCI Secretary General Nicholas Suharsono said in a written response to Bloomberg’s questions.