BLUE BIRD, INDONESIA’ S LARGEST TAXI OPERATORS, FLOATED SHARES AT THE IDX

November 05, 2014

Capital Markets & Securities


BACKGROUND

MDC was appointed by Bluebird, a value client, to serve as their advisor for an initial public offering in 2013. Bluebird, Indonesia top taxi operator and one of the most recognizable brands on the street of Indonesia, completed its initial public offering on November 2014, boasting a fleet of more than 30000 units operating in 17 cities nationwide. Founded by the late Mutiara Djokosoetono in 1972 with 25 cars in its fleet, the company is now managed by a third generation of the founding family. Blue Bird with its famous brand and good reputation is the clear market leader, having a market share of about 33 percent in Indonesia’s taxi services market.

THE IPO

Blue Bird is the 19th company that has conducted an initial public offering on the Indonesian Stock Exchange in 2014. On November 5th 2014 the company’s shares made their debut on the stock exchange and immediately soared over 25 % to IDR 8,175 per share. By releasing 376.5 million shares to the public, Indonesia’s largest taxi operator raised more than IDR 2.3 Trillion, approximately USD 188 million in spite of a weak equity market conditions.

Although touted as the most anticipated IPO in Indonesia of 2014, Blue Bird had to downsize its IPO target due to conservative market perception on the global economy. Previously, Blue Bird had to delay the launch of the IPO in 2013 due to raised concern by the Financial Services Authority (OJK), regarding an outstanding lawsuit from a family member of the firm’s founder; however the company went ahead with its IPO plan after a district court rejected the lawsuit in February 2014, over share ownership and trademarks.

PARTICIPANTS

Credit Suisse Securities Indonesia, Danareksa Sekuritas and UBS Securities Indonesia were appointed as the joint global coordinators and book runners for the IPO whilst MDC was appointed as the legal advisor for Blue Bird.