Indonesia Stock Exchange Probes Prima Multi Business IPO Confusion

Underwriter commitment questioned after slow market uptake

The Indonesia Stock Exchange (BEI) is investigating the troubled initial public offering of PT Prima Multi Business Indonesia Tbk (PMUI). Questions swirl around underwriter obligations, as the offering faced unexpectedly weak market demand.

Independent Commissioner Speaks Out

Independent Commissioner **Theo Sekatompessy** addressed the situation, detailing events that transpired during the IPO. According to **Sekatompessy**, PMUI fulfilled all obligations as an issuer, including contracts with underwriters and payments to supporting institutions. The company also successfully passed feasibility testing by the IDX and OJK.

However, a snag arose during the final stage as the market failed to fully absorb the shares. “Very few are sold, about only 25% of the total shares,” **Sekatompessy** said. He estimated that approximately 290 million shares were successfully sold to the public.

Full Commitment Under Fire

**Sekatompessy** highlighted the agreed-upon full commitment agreement with the underwriter, asserting that it should have ensured complete share absorption regardless of market interest. “So you can’t say it failed to sell, because it is already a full commitment,” he stated.

He further accused unnamed parties of evading responsibility and spreading confusing information on social media. Amidst this pressure, **Sekatompessy** claimed he was compelled to intervene directly. He added, “Well, in the end, yes, roughly, I was to wash the safe, to control this underwriter.”

In 2023, more than 70% of IPOs in the Asia-Pacific region were underwritten on a firm commitment basis, indicating the prevalence of this arrangement (S&P Global, 2024).

Company Overview

PT Prima Multi Business Indonesia Tbk (PMUI) is a national distributor of Xlsmart telecommunications products (EXCL) and mobile accessories affiliated with PT Graha Prima Mentari Tbk (GRPM). PMUI aimed to raise a maximum of Rp208.8 billion through its IPO.

PT Korea Investment and Sekuritas Indonesia, with the trading code BQ, served as the IPO’s implementing guarantor.