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What rout? Two newcomers defy gloomy market opening

first_img“Yesterday [Thursday], I predicted that as we are listed, [trading at the bourse] would be halted,” Adi told reporters during the initial listing ceremony at the IDX in Jakarta. He added that the company decided to go on with its listing as “we are confident about our company’s fundamentals”, though he conceded that market confidence was low right now. During the companies’ IPO, which took place earlier this month, Metro Healthcare and Makmur Berkah raised Rp 1.1 trillion (US$75.38 million) and Rp 64.35 billion, respectively. Read also: Indosat to spend another Rp 9.5 trillion this year to expand 4G networkMetro Healthcare plans to allocate 60 percent of its IPO funds to land acquisitions, 30 percent to building a hospital in Majalaya district in Bandung, West Java, and 10 percent to its subsidiaries for their working capital. “We hope the [Majalaya] hospital can be fully operational in the second half of next year. [We] will need around one year to build the hospital,” Metro Healthcare president director Henry Kembaren said on Friday, adding that the company currently operated seven hospitals.Meanwhile, Makmur Berkah, which mostly works in developing industrial areas and building storage complexes, will allocate 60 percent of its proceeds for land acquisitions, 30 percent for working capital and 10 percent will be channeled through its subsidiary.“We will acquire land in Sidoarjo, East Java. From the point of view of logistics storage, it’s a good location because it’s right in the middle [of the province]. [Goods can be delivered] to Tanjung Perak, Bali and surrounding areas,” Adi said, explaining how the acquisition would help expand the company’s business operations.  Read also: Stock falls capped at 7%, no pre-opening trade as IDX prevents steep drops amid global market routMetro Healthcare and Makmur Berkah became the 17th and 18th companies, respectively, listed on the stock market this year. Last year, the IDX only saw 55 new listings, down from the 57 in the previous year.After trading resumed, the two companies’ stocks remained in the green zone. Metro Healthcare closed Friday’s trade at Rp 139 per share, a nearly 35 percent increase, and Makmur Berkah concluded at Rp 148 per share, also close to a 35 percent rise. (ydp) PT Makmur Berkah’s shares, listed under the code AMAN, rose by 34.55 percent to Rp 148 per share from its IPO price of Rp 110 per share. Read also: Indonesian stocks close higher after dramatic morning plungeDespite the relatively warm welcome from investors — considering that the bourse has entered bear market territory defined as experiencing a 20 percent drop from a recent high — as trading of all shares on the IDX was suspended for 30 minutes following a new trading halt regulation put in place on Wednesday. This came to no surprise for Makmur Berkah president director Adi Saputra Tedja as the global market saw a historic rout on Thursday with circuit breakers triggered in several countries around the world and some markets plunging at levels unseen since the 1980s. Healthcare provider PT Metro Healthcare Indonesia and property developer PT Makmur Berkah Amanda Tbk defied steep losses in the broader market when their shares were listed for the first time on the local stock exchange on Friday.As trading was halted at 9:15 a.m. following a 5 percent plunge in the main index, the Jakarta Composite Index (JCI), the two companies saw their initial shares listing defying the broader market and receiving a warm welcome.Share prices of PT Metro Healthcare, traded on the Indonesia Stock Exchange (IDX) under the code CARE, climbed 6.8 percent to Rp 110 per share, from Rp 103 per share during its initial public offering (IPO) and just a few minutes after trading started. center_img Topics :last_img read more

Suarez will not face police action

first_img Officers from the Surrey force, on behalf of their north-west colleagues, attended Chelsea’s Cobham training ground on Sunday night to speak to the Serbia international. However, Ivanovic did not report any physical injury and told police he did not want to pursue the matter. Merseyside Police have confirmed no action will be taken against Liverpool striker Luis Suarez following his bite on Chelsea defender Branislav Ivanovic on Sunday. “Merseyside Police can confirm that, following an incident at the Liverpool v Chelsea game yesterday, officers have spoken to Branislav Ivanovic in person,” a statement from Merseyside Police read. “He had no apparent physical injuries and did not wish to make a complaint. “This is now a matter for the Football Association.” Football’s governing body is currently reviewing the incident, which happened in the 2-2 draw at Anfield. The club have fined Suarez, who asked for the money to be donated to the Hillsborough Families Support Group, but have no plans to sell the Uruguay international in the wake of the controversy. center_img Press Associationlast_img read more