IPO Pros & Cons
Agrapana’s 2023 Pipeline Project
Pros
(Advantages)
- Fund raising
- Increase Company’s profile, public awareness
- Increase Company’s valuation
- 5% income tax (PPh) discount for listed company with at least 40% public portion (shares owned by public post-IPO)*
- Provide favorable exit strategy for existing shareholder(s)
VS
Pros
(Advantages)
- ‘Power sharing’
- Mandatory public disclosure
- Additional regulations (OJK and IDX) required to be addressed
- Possible increase in personnel expenses in order to comply with regulations
- Demanding expectations from public, investors
*) | The Gov’t of Indonesia is currently planning to lower corporate income tax in the upcoming 2022 taxation law amendment, from current rate of ~25% to 20% for unlisted companies and 17% for listed companies. (Source: idxchannel.com, 13 September 2021) |