IPO (Initial Public Offering) funding is a specialized financial solution that helps companies raise capital to transition from private to public status. This funding covers essential costs such as underwriting fees, regulatory compliance, marketing, and operational expenses, ensuring a smooth public launch.
Going public is a major milestone that enhances brand visibility, provides access to a larger pool of investors, and increases market valuation. However, the process is costly and requires substantial financial backing. IPO funding ensures companies have the necessary liquidity to cover pre-IPO expenses, ensuring a successful public listing.
Why Go Public?
The Benefits of an IPO
1. Access to Large-Scale Capital
Becoming a publicly listed company allows you to raise significant funds from investors, enabling expansion, debt repayment, and business growth.
2. Increased Company Valuation and Prestige
A publicly traded company often enjoys higher valuations, improved reputation, and stronger brand trust in the market.
3. Better Business Opportunities
Being listed on the IDX attracts potential investors, partners, and customers, increasing business expansion opportunities.
4. Liquidity for Shareholders
An IPO allows early investors and founders to liquidate their shares, providing financial flexibility while still maintaining company control.
IPO Funding: Secure Capital for Your Initial Public Offering
How to Qualify for IPO Funding
To secure IPO financing, companies must meet the following criteria:
Strong financial performance and revenue growth
A scalable business model with high market potential
Clear regulatory compliance and corporate governance
A well-defined IPO strategy and investor prospectus
How to Become a Publicly Listed Company on the Indonesia Stock Exchange (IDX)
ExcellTrust: Your Partner in IPO Funding and Process
✅ IPO Funding & Capital Raising
✅ Regulatory Compliance & Legal Advisory
✅ Financial Structuring & Due Diligence
✅ Investor Relations & Market Positioning
Our expert team ensures that your IPO is fast, efficient, and successful, helping you achieve the best valuation and market positioning.
Top IPO Funding Providers & Investment Banks
✅ Goldman Sachs – Leading underwriter for IPOs with a strong global presence. – https://www.goldmansachs.com/
✅ JP Morgan Chase – Provides IPO advisory, funding, and underwriting services. – https://www.jpmorganchase.com/
✅ ExcellTrust – Expert funding solutions tailored for pre-IPO businesses. – https://excelltrust.com/
✅ Morgan Stanley – Specializes in IPO financing for high-growth companies. – https://www.morganstanley.com/
✅ UBS Investment Bank – Offers innovative financial strategies for IPO success – https://www.ubs.com/global/en/investment-bank.html
How ExcellTrust Helps Your IPO Success
Our IPO Funding Services
Pre-IPO Financing
Pre-IPO Financing – Capital raised before the IPO launch to cover listing expenses and company expansion.
Equity Investments:
Equity Investments – ExcellTrust provide capital in exchange for company shares before the public offering.
✅ UNLIMITED FUNDS
Working Capital Solutions:
Secured Financing – secured capital against company assets to support IPO expenses.
✅ UNLIMITED FUNDS
✅ FUNDING SCHEME: Loans / Partnership
Bridge Loans
Bridge Loans – Short-term financing to manage cash flow before IPO funds are available.
✅ UNLIMITED FUNDS
SPAC (Special Purpose Acquisition Company) Funding
SPAC (Special Purpose Acquisition Company) Funding – Alternative IPO funding where a shell company acquires a target firm to take it public.
✅ UNLIMITED FUNDS
Requirements to Be Listed on IDX (Indonesia)
1. Legal Entity and Business Operations
1. Legal Entity and Business Operations
- The company must be a Perseroan Terbatas (PT) under Indonesian law.
- It must have been operating for at least one year before applying.
2. Financial Requirements
2. Financial Requirements
IDX has two listing boards with different financial requirements:
A. Main Board (For Large, Established Companies)
- Minimum net tangible assets: IDR 100 billion (~$6.5 million).
- Positive net profit for at least one out of the last two years.
B. Development Board (For Growing Companies)
- Minimum net tangible assets: IDR 5 billion (~$325,000).
- Profitability is not required, but the company must show strong growth potential.
3. Public Shareholding (Free Float) Requirements
3. Public Shareholding (Free Float) Requirements
- Main Board: At least 300 public shareholders.
- Development Board: At least 500 public shareholders.
- Minimum 20% of shares must be publicly owned if the company’s market capitalization is below IDR 500 billion (~$32 million).
4. Corporate Governance & Compliance
4. Corporate Governance & Compliance
- Must have an independent commissioner and an audit committee.
- Financial statements must be audited by an OJK-approved public accounting firm.
- Must follow IDX transparency and disclosure regulations.
The IPO Process in Indonesia
Step 1: Appoint Advisors & Underwriters
Step 1: Appoint Advisors & Underwriters
Before applying, companies must appoint financial, legal, and IPO consultants, including an underwriter who will help issue shares to the public.
Step 2: Prepare Financial Reports & Legal Documents
Step 2: Prepare Financial Reports & Legal Documents
A company must submit audited financial statements and prepare all legal documents, including:
- Prospectus
- Articles of Association
- Board resolutions
- Business plans and future projections
Step 3: File an IPO Application with OJK and IDX
Step 3: File an IPO Application with OJK and IDX
The Financial Services Authority (OJK) reviews the prospectus, ensuring compliance with capital market regulations before granting approval. IDX will then review the company’s eligibility.
Step 4: Bookbuilding & Pricing
Step 4: Bookbuilding & Pricing
- The company, with its underwriter, conducts a bookbuilding process to determine the IPO price range.
- Institutional and retail investors express interest in purchasing shares.
Step 5: Public Offering & Trading on IDX
Step 5: Public Offering & Trading on IDX
Once the IPO is approved, the company starts offering shares to the public. After completion, the stock is officially listed and begins trading on IDX.
Conclusion
Becoming a publicly listed company on IDX requires careful planning, financial readiness, and regulatory compliance. With ExcellTrust’s IPO expertise, we can help you secure funding, navigate the process, and maximize your success in the public market.