PT DCI Indonesia has increased by 10.852% since listing on January 6.
New Delhi: A cloud data service provider partly owned by an Indonesian tycoon has delivered the world’s best-performing initial public offering this year, up more than 100 times since its launch. Shares transfer in January.
PT DCI Indonesia has gained 10.852% since listing 150 billion rupiah ($10.5 million) on Jan. 6. That makes the company the top gainer on the Indonesian stock market and contributes the second largest gain in the Jakarta Composite Index’s 12% gain this year.
DCI’s stellar performance is another example of frenzied trading in Indonesian tech stocks this year, with the sector’s main gauge having nearly quadrupled since its launch at the end of the month. January. However, caution should be exercised as to how much investors should read because of the stock’s meager trading and lack of research by brokerages.
“The data center industry is one that has benefited from the boom in e-commerce and the digital economy in Indonesia,” said Henry Wibowo, head of research at JP Morgan Sekuritas Indonesia. Wibowo said he didn’t include the company because “the stock is illiquid.”
DCI is 11% owned by Indonesian billionaire Anthoni Salim, whose business empire spans from food, telecommunications to real estate.
The stock’s sharp rise has led to a periodic suspension of trading and an investigation by stock exchange officials into the company for possible trading manipulation earlier this year.
The Indonesia Stock Exchange has completed its investigation, the exchange’s director of trading monitoring and compliance said in a written response to queries from Bloomberg News earlier this week without further elaborating.
“Based on the results of the stock exchange inspection, there is no indication that the company has committed any violations,” DCI company secretary Nicholas Suharsono said in a written response to questions from Bloomberg.
