A number of employees of the Indonesia Stock Exchange (IDX) pass a share price display. PT Digital Mediatama Maxima’s share prices closed at Rp 274 during afternoon trade on Monday, about 20 percent from its offering price of Rp 230 during the initial price offering (IPO). (Antara/Sigid Kurniawan)

Ever since the company listed its shares on the Indonesia Stock Exchange (IDX) last week, digital advertising firm PT Digital Mediatama Maxima (DMMX) is among the top choices of foreign investors.

The company’s shares were the most traded by foreign investors on Friday, followed by PT Telekomunikasi Indonesia (TLKM), the exchange’s data show. As of Friday, 88.16 million DMMX shares have been purchased by overseas investors.

DMMX shares rose 15 percent to 264 per share when the shares were listed on the IDX on Oct. 21. The share price continued to increase in the following days amid strong demand from foreign investors. The share prices rose further to Rp 274 at the close of afternoon trading on Monday.

The company sold 35 percent of its shares, equivalent to 2.69 billion shares, to the investing public at a price of Rp 230 per share during its initial public offering during the last week of September. The company expected to raise Rp 618 billion of fresh funds from the IPO.

Digital Mediatama president director Budiasto Kusuma claimed that 75 percent of the funds from the IPO would be used as working capital, while 25 percent are going to be invested in information technology (IT) innovation and human resources.

“After the IPO, we will also focus on increasing our digital advertising presence in both modern and traditional retail outlets,” said Budiasto at the IDX building in South Jakarta following the company’s listing on the IDX.

Digital Mediatama’s main portion of its business revolves around providing digital advertising services in convenience stores Indomaret and Alfamart, fast food chain KFC, private lender BCA and Sampoerna Retail Community (SRC) vendors that are spread across 25 cities in Indonesia.

The company plans to operate in 7,000 modern retail outlets and 47,000 traditional outlets by the end of this year.

Digital Mediatama chief commissioner Jahja Suryandy also stated that DMMX prefered to collect funding from the stock market compared to angel investors or venture capitalists.

“With this IPO, we want to invite the public to become involved with Digital Mediatama’a future plans,” said Jahja at the same event.

According to him, by becoming a publicly-listed company, DMMX’s management will pay more attention to maintaining good and transparent corporate governance.  (bry)