IPO underwriters exposed by Indonesian regulations

Author: | Published: 10 Dec 2009

Indonesia’s first international initial public offering (IPO) this year has revealed the impact of Bapepam’s new offering regulations on underwriters. Underwriters are now restricted from exiting deals after the offering begins, increasing their risk exposure.

BW Plantation’s IPO last month was the first international deal under the new regulations, which were revised in March. The underwriter (BNP Paribas) had to get comfortable...