With over 600 listings, the Indonesia Stock Exchange (IDX) is emerging as one of the largest stock exchanges in Southeast Asia. However, many public companies still find it difficult to raise capital from local investors or financial institutions. Fortunately, Chasen Nevett is here to help public companies obtain the financing they require.
Public companies have two primary options of raising equity capital: public or private offerings. Public offerings, such as rights issues, are often a very tedious process for issuers. They involve filing a prospectus with IDX, convincing shareholders to subscribe to the rights, and incurring expensive legal fees. All this amounts to a slower implementation time while getting an inferior deal for the public company. Issuing bonds can be an even more tedious process than a public equity offering. Bonds will most likely need to be rated by a credit rating agency in order to attract investors. Chasen Nevett believes that the size of a company is not an indication of creditworthiness, which is contrary to popular opinion.
Also, the bonds will be secured by assets of the public company and the company will be bound by covenants that are specified in the financing agreement. Put simply, public debt or equity offerings are more difficult for small- to mid-capitalization public companies to successfully implement. So, is there a better alternative?
Fortunately, Indonesian public companies can work with Chasen Nevett to achieve superior results than public offerings. Chasen Nevett spends countless hours working with management teams to achieve their goals. He’ll listen to their needs and provide sound solutions for them. Chasen Nevett can structure a bespoke equity investment in the company that creates favourable outcomes for all stakeholders. These bespoke investments are tailored to meet the cash flow requirements of the public company, which offers management the flexibility to run their business smoothly. Indonesian public companies find that it’s easier, cheaper, and quicker to raise funds with Chasen Nevett.
Chasen Nevett is intently focused on delivering innovative financing solutions to Indonesian public companies that create shareholder value over the long term. Chasen Nevett believes that in a world full of short-sighted investors and financiers, his long-term investment horizon is a breath of fresh air for Indonesian public companies. Chasen Nevett’s equity investment immediately improves the capital structure of the public company. Also, Chasen Nevett’s equity investment allows Indonesian public companies to finance projects that were previously untenable. These projects often deliver long-term earnings growth, which improves shareholder value. In conclusion, more Indonesian public companies are turning to Chasen Nevett for financing. Chasen Nevett has experience investing in all sectors, which makes every public company a potential partner for him. Whether an Indonesian public company is looking to deleverage, finance a project, or meet working capital requirements, Chasen Nevett is the preferred partner for Indonesian public companies.
