On July 16, 2008, 31,985,962,000 shares in Adaro Energy were publicly listed on the Indonesian Stock Exchange (IDX) under the
ticker code ADRO, with 35% of those (11,139,331,000 shares) marketed in an Initial Public O ering (IPO) intended to simplify the corporate structure into a single holding company and provide funds to allow Adaro to strengthen its coal supply chain.
The IPO raised Rp12.2 trillion, and remains the largest IPO in the history of the IDX. The Rp11.8 trillion net proceeds from the IPO, were entirely spent as of May 29, 2009. The Company’s management reported this to its shareholders during the annual general meeting of shareholders (AGMS) on June 3, 2009.
At the end of the 2015, the total free float of Adaro shares was 11,297,011,810, or 35.32% of the total Adaro’s shares. The total number of shareholders had increased to 17,081 from 16,040 at the end of 2014.
There were no major movements during 2015 from our key public shareholders. Dimensional Fund Advisors and Korea Electric Power Corporation were our top foreign shareholders, while BPJS Ketenagakerjaan and Taspen were our top domestic shareholders.
The proportion of domestic public shareholders reached almost 11.5% during 2015, but ended the year at 10%, similar to 2014. The domestic market has a degree of skepticism over to what extent coal- red power plants will be a driver for coal producers’ returns in the future. In addition, mining stocks faced pressure due to a poor outlook on coal prices and its expected e ect of earnings going into 2016.
Indonesian Stocks in 2015
The Jakarta Composite Index (JCI) did not have a good year in 2015. It was characterized by investors’ volatile behavior due to uncertainty over the US Federal Reserve Bank’s position on interest rates, which it nally raised in December, and China’s continuing economic slowdown, which led to capital out ows from emerging markets. Further pressure came from increasing unhappiness at the Indonesian government performance and economic weakness.
The JCI closed 2015 12% down at 4,593 points. This was the third-weakest performance among benchmark Asian stock indices after Singapore and Thailand. Liquidity was poor during 2015 as many investors took a wait-and-see approach. Total trading volume in 2015 was 2.75 trillion shares, down 40% from 4.67 trillion shares in 2014.
The daily average stock transaction value was Rp5.8 trillion, down 4%, while the frequency rose 4.4% to an average of 221,942 transactions per day in 2015. Only 16 companies conducted an IPO on the IDX in 2015, while the IDX targets 35 companies to go public in 2016.
It is expected that the market will fare better in 2016. Although fears of another US interest rate hike could spark capital out ows, an interest rate cut by Bank Indonesia in January 2016 gives an impetus to spur economic growth in Indonesia, and the central bank forecasts Indonesian economic growth of between 5.2% and 5.6% this year.
Negative sentiment continued to depress Indonesian miners during 2015. Lower demand from China and weak commodity prices saw the stock price of many mining companies retreat sharply. The Jakarta Mining Index (JAKMINE) was the worst performer of the nine sub- indices that make up the JCI in 2015, ending the year at 811 points, down 41% from 1,369 at the end of 2014.
ADRO performance was broadly in line with JAKMINE, showing a fall of 50% year on year. After opening 2015 at Rp1,040, it closed the year at Rp515.
Among speci c investor concerns were Adaro’s plans to develop coal- red power plants: this was not due to perceived negligence or poor strategy, but frustration at delays in land acquisition
of our Central Java power plant project. More instrumental in our share price movement was the poor coal-price outlook.