On April 23, 2026, several students from the Management Study Program at Dian Nusantara University (UNDIRA) took the opportunity to visit a Bank Mandiri sub-branch (KCP) in Greenville, West Jakarta, to broaden their knowledge of stocks and investment.

When it comes to investing, of course information is king. It serves as the primary foundation for investors in making decisions before allocating a portion of their funds into a particular investment instrument.

As commonly understood, such information is often presented in the form of corporate actions, including rights issues, dividends, buybacks, and stock splits. However, among these corporate policies, one stands out as highly anticipated by investors: the Initial Public Offering (IPO).

Fundamentally, an IPO is a strategic move undertaken by a company to expand its business. While companies typically operate independently, in certain situations an IPO is pursued when substantial capital is needed to support the growth of the main business or its subsidiaries.

In addition, the issuance of an IPO requires approval from stakeholders and the Financial Services Authority (OJK), in accordance with Law Number 40 of 2007 concerning company establishment and capital structuring.

When the IPO plan and its prospectus are published on the e-IPO platform, prospective investors can review the company’s profile, the appointed underwriters involved (typically securities firms or banking institutions), as well as the planned allocation of IPO proceeds for both the company and its subsidiaries through the accompanying documents.

After understanding the details of fund allocation and the company’s profile, potential investors can assess the company’s track record over recent years to evaluate its performance and management system before ultimately investing during the bookbuilding or initial offering phase.

Following this phase, within approximately one week, the underwriters will coordinate with the OJK to determine share allotment for investors. This process becomes necessary when demand exceeds the available shares (oversubscription). If an investor does not receive an allotment, their funds will be refunded through the e-IPO system.

If investors do not secure shares during the bookbuilding phase, they may place orders again during the public offering phase. For those who successfully receive an allotment, they simply need to wait until the IPO issuance date.

So, why are IPOs so highly anticipated and considered a prime opportunity? Beyond facilitating business expansion, IPOs offer the potential for rapid gains and attractive initial pricing. For instance, RLCO’s IPO, which debuted at 168, surged to 8,700 on January 19, 2026—yielding returns of over 1,000% for investors.

Moreover, there is often a phenomenon where the IPO of a subsidiary can positively influence the share price of its parent company or other companies within the same group, driven by optimistic market perceptions of business expansion.

An IPO is not merely a “gong” signaling a company’s entry into the public market; it represents the intersection between a company’s need for expansion and investment opportunities for the broader public. With a well-informed and prudent approach, IPOs are not just a means of pursuing short-term gains, but also a reflection of a company’s long-term journey.