The Indonesia Stock Exchange (IDX) estimates that the value of raising funds through additional capital with rights issues and private placement will increase this year.

IDX Director of Corporate Valuation I Gede Nyoman Yetna said, until now, there have been 18 listed companies that have obtained the approval of the General Meeting of Shareholders (GMS) to hold a rights issue. Eleven of the 18 companies have informed the price of the rights issue plan, with the potential to raise funds around Rp11.37 trillion.

"Also, there are seven listed companies that have obtained GMS approval to carry out a private placement. Four of the seven companies have informed the price of a private placement with total fundraising of Rp761 billion," he said in his statement in Jakarta on Monday (19/4).

According to Nyoman, the company's enthusiasm for raising funds in the capital market has shown an increase this year by looking at the incoming pipeline.

"The high enthusiasm is supported by the increasing need for additional working capital, business expansion, and the need for debt refinancing of listed companies," he explained.

The high level of fundraising from the capital market this year is due to expectations that the domestic economy will begin to recover after the Covid-19 vaccination. The reason is, this has an impact on company activities that require capital to grow.

"Based on these conditions, the stock exchange hopes that fundraising through equity issuance will increase in 2021," said Nyoman.

Judging from the sector, Nyoman assessed that companies that raise funds through equity are estimated to be mainly from the banking sector.

"Public companies in this sector plan to use funds from equity issues to strengthen their core capital and expand their businesses according to their business strategies," he said.

Furthermore, Nyoman explained, the Exchange sees the company's enthusiasm to raise funds through equity issuance since the first quarter of 2021.

"In that period, as many as listed companies had conducted rights issues with the total funds raised of Rp12.1 trillion," he said.

Also, as many as six companies held private placements with total fundraising of Rp12.48 trillion.

The total fundraised during the first quarter of 2021 reached Rp24.57 trillion through the rights issue and private placement. This value has increased about eight times, compared to the first quarter of 2020, which reached Rp2.96 trillion.