Indonesian Firm “Chest” Attracts Attention from Global Investment Giant Vanguard, Following Japanese Firm Investments
Jakarta, Indonesia – Indonesian company “Chest” is experiencing a surge in investor interest following recent acquisitions by Japanese conglomerates Mitsubishi Estate Co., Ltd. and Kajima Corporation, coupled with growing speculation of a potential investment from global asset management firm The Vanguard Group. The developments are fueling anticipation of a significant shift in the Indonesian capital market.
Over recent months, Mitsubishi and Kajima have been acquiring shares in Chest, a company that recently initiated its first dividend distribution since its initial public offering (IPO) and is working to exit oversight by the Financial Services Authority (FCA/PPK). Notably, Chest has also undertaken efforts to increase its public float through share releases, a move typically viewed with caution but which, in this case, coincided with a dramatic 700% increase in share price from Rp11 to current levels.
the heightened activity has drawn attention to Vanguard, a U.S.-based firm managing USD 10.2 trillion in assets – a figure equivalent to 50 times the proposed 2025 Indonesian state budget. Unlike traditional public companies, Vanguard is uniquely structured as being owned by its managed funds, prioritizing investor interests. The firm boasts a consistent track record of 12-18% annual returns over the past five years, focusing its investments on issuers with a minimum free float of 50%, a market capitalization exceeding USD 100 billion, and highly liquid shares.
Currently, Mitsubishi Estate shares trade in the range of ¥3,160-¥3,170 (approximately Rp348,000 – Rp352,000 per share), while Kajima Corporation shares are priced at ¥4,290-¥4,332 (roughly Rp472,000 – Rp481,000 per share). This represents a significant valuation gap compared to Chest’s recent trading range of Rp25 – Rp11,000, suggesting ample growth potential.
Analysts suggest that if Vanguard were to invest, potentially through an Asian proxy, Chest’s market capitalization could reach USD 100 billion. Based on its 7.4 billion circulating shares, this would translate to a theoretical valuation of Rp230,000 per share (using an exchange rate of Rp16,500).
Vanguard’s investment pattern typically involves founders/controllers maintaining a 10-15% stake, with the majority of shares held by institutions and the public, fostering liquidity and stable, double-digit growth – a model seen in successful companies like Microsoft, Apple, and Nvidia.
The potential consolidation of Chest within the financial statements of mitsubishi and Kajima is expected to further enhance its appeal to global investors. The unfolding situation has led some to invoke the investment adage “buy on rumour, sell on news,” suggesting the current speculation surrounding the acquisition could represent a pivotal moment for the Indonesian capital market.
Disclaimer: This report is for informational purposes only and should not be considered financial advice.
