Two Indonesian football clubs, Bali United and Persija Jakarta, are reportedly exploring options to tap the public markets and list their shares on the Indonesian Stock Exchange (IDX).
According to reports by local media, the club, operated by Bali Bintang Sejahtera, has appointed Kresna Sekuritas as underwriters for the IPO and has also approached the IDX about its plan.
It is understood that the club, which has around Rp 120 billion ($8 million) worth of assets, will offer 33.3 per cent of its shares to the public and is looking to raise over Rp 100 billion ($7 million) from the IPO. The proceeds from the IPO will be used for investment and working capital.
According to Kresna Sekuritas, Bali United is likely to be the first football club in Indonesia to become a public company.
Prior to Bali United’s announcement of its IPO plan, one of its peers Persija Jakarta had told local media that it was looking to launch an IPO after the Indonesian presidential election in April, as reported by Reuters.
However, it is understood that the Jakarta-based club, which is looking to release 20 per cent of its shares, has yet to commence talks with the IDX about its plan.
Football is Indonesia’s number one sport which attracts enormous public interest. However, the country’s premier professional league is currently beset by match-fixing allegations, which has dragged a number of clubs into potential legal trouble, including both Bali United and Persija Jakarta.
In 2012, Persib Bandung Bermartabat (PBB), the manager of a local football club had once declared its plan for an IPO. It had appointed Mandiri Sekuritas, Bahana Sekuritas, and Buana Capital to arrange the shares offering. It had even targeted Rp 200 billion ($15 million) from the fundraising.
The plan crashed, however, when turmoil and scandal hit the Indonesian football industry, leading FIFA to ban local clubs from participating in any international events not long after.
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