Rights Issue Success Paves the Way for Capital Market Growth

Bisnis.com, JAKARTA – The Indonesian capital market is experiencing a downturn, with the IDX Composite Index (IHSG) nearing the 6,000 level. A successful rights issue could provide momentum for the index to recover.
However, this optimism remains uncertain, as the number and value of rights issues declined throughout last year.
The Indonesia Stock Exchange (IDX) recorded 15 rights issues in 2024, raising IDR 34.42 trillion. The financial and infrastructure sectors led the way, contributing IDR 14.15 trillion and IDR 13.15 trillion, respectively.
This marks a decline from the previous year, which saw 25 rights issues with a total fundraising value of IDR 56.18 trillion.Panin Sekuritas Equity Research Analyst Felix Darmawan stated that this year's rights issue prospects remain challenging amid a sluggish stock market.
The IHSG fell 1.83% at Thursday’s (27/2/2025) close to 6,485.44, marking an 8.4% YtD decline.
"In a sluggish market, rights issues face major challenges due to limited investor interest and macroeconomic uncertainty," he said.
According to Felix, for issuers with strong fundamentals and clear expansion plans, rights issues remain an attractive funding option, especially for companies with relatively low stock valuations.
"The success of a rights issue can boost market liquidity and serve as an indicator of investor confidence, while failure or low participation can further dampen sentiment," he said.
Therefore, effective pricing and strategic information dissemination are crucial for a successful rights issue in the current market environment.