Indonesia’s Chandra Daya jumps 35% following 2.4 trillion rupiah million IPO

[JAKARTA] Chandra Daya Investasi shares surged as much as 35 per cent in their first day of trading in Jakarta, hitting the daily limit, on optimism they will follow the stellar gains made by other companies linked with billionaire Prajogo Pangestu.

The infrastructure unit of petrochemical giant Chandra Asri Pacific climbed as high as 256 rupiah early on Wednesday (Jul 9), versus the price of 190 rupiah in its initial public offering (IPO). The Jakarta Composite Index rose 0.3 per cent.

Chandra Daya raised 2.4 trillion rupiah (S$189 million) in its IPO, the largest in Indonesia this year. Investors submitted bids for more than 560 times the amount of shares on offer, demonstrating the appeal of firms associated with Pangestu. His coal-producing unit Petrindo Jaya Kreasi has jumped more than 5,000 per cent since it listed in 2023, while Barito Renewables Energy has climbed more than 600 per cent since its debut the same year.

“Chandra Daya’s IPO oversubscription is possibly the highest in the history of the bourse,” said Fransiskus Ruly Aryawan, the company’s president director.

The first-day jump in Chandra Daya came despite concerns over global trade frictions caused by the higher tariffs threatened by US President Donald Trump. Indonesia is seeking to negotiate with the US, saying there’s still a chance to bring down the 32 per cent tariff Trump plans to impose on Aug 1.

Chandra Daya’s projects include energy, water, logistics and ports and warehousing. The company plans to use the proceeds from its share sale to develop and expand its main infrastructure businesses by acquiring ships and funding ports and warehouse operations.

Indonesia’s stock market has seen 18 IPOs this year, raising a total of US$609 million. BLOOMBERG