Demand remains strong for Indonesian stocks as evidenced by the initial public offerings for Indofood CBP and Harum Energy which both priced on Friday last week and together raised $990 million.
Investors liked Indofood CBP for its dominant position in the domestic Indonesian market for instant noodles and, according to sources, submitted orders for several times the deal size, even though some observers argued that it didn’t come cheap. Meanwhile, Harum, a coal producer, has entered a crowded market with seven coal producers or contractors already listed in Indonesia. But its four-decade track record and clean ownership structure appealed to investors and the deal more than three times covered.
Despite the strong demand...