Indonesia issues new stock market rules aimed at luring tech listings

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A worker wearing a protective mask cleans the floor near an electronic board displaying the stock market index at the Indonesia Stock Exchange (IDX), as the outbreak of the coronavirus disease (COVID-19) continues, in Jakarta, Indonesia, September 8, 2020. REUTERS/Willy Kurniawan

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JAKARTA, Dec 7 (Reuters) - Indonesia's Financial Service Authority (OJK) has issued rules on listing of technology companies' shares with multiple voting rights, aimed at attracting more initial public offerings to its domestic exchange, the regulator said in a statement on Tuesday.

Southeast Asia's biggest economy is home to a number of tech unicorns, or companies that have attained a valuation of $1 billion without tapping the stock markets.

Authorities have been trying to lure such companies, including GoTo Group - a merger of ride-hailing app Gojek and e-commerce giant Tokopedia - and travel app Traveloka to list domestically.

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"The issuance of this regulation is an effort to encourage financial market deepening, especially in the capital market sector, by accommodating companies that create new innovations," OJK said.

Under the new rules, which came into effect on Dec. 1, companies seeking shares with multiple voting rights must meet criteria such as operating for at least three years and recording at least 30% annual revenue growth over three years.

The multiple voting share structure can be implemented for 10 years and extended by another decade if shareholders agree.

The rules allow four different ratio classifications for the multi-vote shares.

Earlier this year, Indonesia's first listed unicorn PT raised $1.5 billion in the country's biggest IPO amid a flurry of investor demand. read more

Meanwhile, Indonesia's biggest tech firm GoTo Group said last month it had secured more than $1.3 billion in the first close of its pre-IPO funding round, which two sources said could launch in the first half of next year. read more

Southeast Asia is one of the world's fastest growing internet markets with Indonesia's internet economy expected to be worth $146 billion by 2025, representing 20% compounded annual growth, according to a report by Alphabet's Google, Singapore state investor Temasek Holdings and global business consultants Bain & Company.

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Reporting by Fransiska Nangoy Editing by Ed Davies

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