World’s top IPO: 10,000% jump makes Indonesian data firm best performing IPO

PT DCI Indonesia has risen 10,852% since its 150 billion rupees ($10.5 million) listing on 6 January. This has pushed DCI to the top of the Indonesian stock market and the second largest contributor to the Jakarta Composite Index’s 12% gain this year.

DCI’s stellar performance this year is yet another example of frenzied trading in Indonesian technology stocks, a key gauge of the sector that has risen nearly four times since its launch in late January. However, given the low turnover of the stock and the lack of research coverage by brokerages, investors should be cautious about how much they should read.

“The data center industry is a beneficiary of the boom in e-commerce and the digital economy in Indonesia,” said Henry Wibowo, head of research at JP Morgan Securitas Indonesia. Wibovo said it does not cover the company and that “the stock is not liquid”.

DCI is 11% owned by Indonesian billionaire Anthony Salim, whose business empire spans from food to telecommunications to real estate.

MNC Securities analyst Victoria Veni said the sharp gains in tech stocks were driven by “speculation about their higher EPS growth”.

DCI’s rally has triggered periodic trading suspensions and the firm’s investigation by stock exchange officials for possible manipulation of transactions earlier this year.

The Indonesia Stock Exchange has completed the investigation, the exchange’s director of transaction supervision and compliance said earlier this week in a written response to questions from Bloomberg News, without elaboration.

“Based on the results of the stock exchange inspection, there is no indication of any breach by the company,” DCI Corporate Secretary Nicolas Suharsono said in a written response to Bloomberg’s questions.

This story has been published without modification in text from a wire agency feed. Only the title has been changed.