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SECURING a listing on an overseas stock exchange has become Indonesia's latest corporate craze.
A spate of state-owned and private companies are planning foreign equity offerings in the next few months, at a time when the domestic primary market has ground to a halt.
But already bankers and brokers are starting to wonder if the rush to list abroad indicates a new and viable avenue of fund-raising for Indonesian companies--or whether it will turn out merely to be a passing fad.
The fate of the two most recent--and high-profile--international initial public offerings (IPOs)--would seem to point to the latter.
Two weeks ago international investors were offered two remarkably similar transactions for two newly established holding companies of Indonesian pulp and paper interests.
The Sinar Mas group listed its pulp and paper division, which includes companies in Indonesia, China and India, under the name Asia Pulp and Paper (APP), in a transaction run by Morgan Stanley.
Almost simultaneously, two companies of the Raja Garuda Mas group--Jakarta-listed Indorayon and Riau Andalan Pulp and Paper--were reorganised and floated in New York under a new holding company, Asia Pacific Resources International Holdings Ltd (APRIL).
Both APP and APRIL are domiciled in Singapore and were listed on the New York Stock Exchange without a local or Asian listing.
Despite the lack of confidence among many US investors in emerging markets--and in IPOs generally--both issues were at least completed in full.
But the prices of both transactions need to be reduced to levels well below their indicated ranges to persuade investors to take up the shares.
Following roadshow campaigns in which the two companies virtually chased
each other around the globe, the two IPOs were priced on successive days.
Salomon came first with its APRIL offering, with the lead manager being forced to cut the price on the 20m share issue to $7.50 per share.
The final price was 37% below the mid-price of the indicated range of $11-$13 that APRIL and Salomon had specified at the outset.
Morgan Stanley fared little better, pricing its 27m ADS (American Depositary Share) offering for APP one day later at $11.50 per share, compared with an indicated rang本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。