New Delhi: Partly owned by Indonesian tycoon cloud data service provider, this year it offered the world’s highest performing initial public offering, jumping more than 100 times since its share float in January.
PT DCI Indonesia has surged 10,852% since its listing on January 6th at IDR 150 billion ($ 10.5 million). This makes the company the top winner in the Indonesian stock market and the second largest contributor to this year’s 12% rise in the Jakarta Composite Index.
DCI’s excellent performance is another example of the enthusiastic trading of Indonesian tech stocks this year, with the sector’s major gauges nearly quadrupling since its launch in late January. However, given the low volume of equity transactions and the lack of coverage by brokerage firms, care must be taken as to how much investors should read it.
“The data center industry is benefiting from Indonesia’s e-commerce and digital economy boom,” said Henry Wibowo, Head of Research at JP Morgan Secretas Indonesia. Wibowo said it wouldn’t cover the company because “stocks aren’t liquid.”
DCI is 11% owned by Indonesian billionaire Anthoni Salim, whose business empire ranges from food to telecommunications and real estate.
The sharp rise in stocks has led to regular suspensions and investigations into the company by stock exchange authorities earlier this year regarding the possibility of trading operations.
The Indonesia Stock Exchange has completed the investigation, the stock exchange’s director of trading oversight and compliance said earlier this week that it responded in writing to a question from Bloomberg News without giving details.
“Based on the stock exchange inspection results, there are no signs of a violation by the company,” said Nicholas Suharsono, DCI’s corporate secretary, in a written response to a question from Bloomberg.