The pipeline of companies preparing to enter Indonesia's capital market continues to grow ahead of the end of the first half of 2026. Six companies are set to gauge investor appetite through initial public offerings (IPOs): PT RANS Entertainment Indonesia Tbk. (RANS), PT Bach Multi Global Tbk. (BACH), PT Nitrasanata Dharma Tbk. (JECX), PT Esa Medika Mandiri Tbk. (EMMI), PT Prodia Diagnostic Line Tbk. (PRDL), and PT Niramas Utama Tbk. (JELI).

The upcoming IPO wave comes as the domestic equity market remains under heavy selling pressure, with the Indonesia Composite Stock Price Index (IHSG) declining 31.81% year-to-date (YtD) to 5,896.14 as of Friday, June 26. The benchmark's decline has been accompanied by aggregate foreign net selling totaling Rp71.68 trillion. Under these market conditions, the success of new IPOs could be constrained by limited investor absorption.

According to Mirae Asset Sekuritas Senior Market Analyst Nafan Aji Gusta, the current IPO pipeline coincides with a relatively high Bank Indonesia policy rate (BI Rate). He explained that the higher BI Rate has increased banks' cost of funds, making working capital and investment loans more expensive. By raising capital through the equity market, however, companies can secure fresh funding without incurring recurring interest expenses or principal repayment obligations typically associated with bank loans or bond issuance. As a result, Nafan considers IPOs to be a healthy capital restructuring alternative for maintaining corporate liquidity.

"Raising funds through IPOs during the remainder of this year remains attractive from the issuers' perspective. However, successful execution will require considerable flexibility in determining the offering price to attract liquidity from increasingly selective investors," Nafan said, as quoted on Sunday (June 28, 2026). He also advised investors to remain selective by evaluating a combination of valuation, profitability, sponsor or ultimate beneficial owner (UBO), IPO proceeds allocation, and post-listing liquidity risk.

Nafan also assessed the strengths of each IPO candidate. In his view, PRDL offers the most attractive valuation, with a projected price-to-earnings ratio (PER) of approximately 10.3–12.3 times and a post-IPO price-to-book value (PBV) of around 1.2–1.4 times. The company also benefits from the backing of the Prodia Group. Meanwhile, BACH posted the highest return on equity (ROE) at 28.9%, is supported by the Djarum Group, and is expected to achieve a market capitalization of around Rp2.04 trillion.

JECX, on the other hand, is backed by the Emtek Group and is projected to have the largest market capitalization among the six IPO candidates at approximately Rp4.55 trillion. Nevertheless, it also carries the highest valuation, with a PER ranging from 52.9 to 61.8 times. RANS stands out for its strong brand recognition, the highest return on assets (ROA) of 13.2%, and the lowest debt-to-equity ratio (DER) among the IPO candidates at 0.35 times. Meanwhile, both JELI and EMMI recorded solid ROE figures of 27.0% and 25.2%, respectively, although both companies trade at relatively premium valuations and maintain higher leverage levels.

Separately, BRI Danareksa Sekuritas analyst Abida Massi Armand believes that EMMI and PRDL offer the strongest growth stories among the current IPO candidates. According to him, both healthcare companies are supported by continued expansion in diagnostic services and significant room for market penetration. He also considers RANS to have an advantage as a creative economy company with strong brand recognition. However, he cautioned that the long-term sustainability of its content-based business model still requires further assessment.

Abida also views JELI, a consumer sector company, as benefiting from stable demand that could support sustainable business growth. Regarding the allocation of IPO proceeds, he explained that using the funds to repay debt does not necessarily diminish a company's investment appeal, provided it is accompanied by a well-defined expansion strategy. In a high-interest-rate environment, debt repayment can strengthen the balance sheet and improve future net profitability. Nevertheless, investors should carefully evaluate the balance between deleveraging and growth investments, as this serves as an important indicator of an issuer's long-term growth prospects.

Overall, Abida believes the IPO market could improve during the second half of 2026 as geopolitical tensions ease, post-MSCI uncertainty subsides, and the IHSG rebounds, creating a more favorable market environment. He added that the growing IPO pipeline reflects improving confidence in Indonesia's capital market, while the quality of listed issuers will remain the key factor in sustaining this momentum.

He further noted that the current high-interest-rate environment actually supports IPO activity, as equity financing becomes a more attractive funding alternative than bank borrowing when the BI Rate stands at 5.75%, since companies are able to raise capital without increasing their interest burden.

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