Liga 1’s Bali United FC Scores Historic IPO In Southeast Asia

Bali Bintang Sejahtera, the owner of soccer club Bali United FC, started trading on the exchange on June 17, selling 2 billion shares, or one-third of its total shares, at 175 rupiah each (US$0.012), according to a report in the Business Times. The shares were up 140% from their IPO price in just three days, before eventually giving up some of their gains.

The company’s next goal following its stock debut will be to sustain growth. It reportedly aims to increase sales by 38% on the year to 159 billion rupiah (over ~US$11.2m) in 2019, of which 60% is expected to come from sponsorship deals.

Bali Bintang’s other businesses include stadium concessions and esports. The fundraising is expected to provide capital for diversification into more businesses and help expand its fan base.

Liga 1 has grown in popularity in recent years with total attendance for Liga 1 matches topping 3 million in 2018, up 17% from a year earlier, according to data from the Indonesian Football Association.

Southeast Asia’s first listing of a professional sports club reflects the growing stature and professionalism of Indonesia’s top-tier football league, which is trying to break from its corruption-ridden past. Yabes Tanuri, owner of Bali Bintang, told local media that he hopes the listing will elevate the country’s sports and entertainment sectors.

Investors are now speculating when other professional clubs in the region will kick off their own IPOs amid Southeast Asia’s passion for the beautiful game. Persija Jakarta, Liga 1’s 2018 champion, and Thailand’s Buriram United already have IPOs planned.