Tips for Choosing IPO Stocks for Long-Term Investment in 2022


Tips for choosing IPO shares are quite important, especially for long-term investment continuity. Do not let you just follow the trend without doing the analysis properly.

The lively IPO certainly provides a breath of fresh air for investors. They can choose a variety of new stocks.

However, to do so, of course, there are several things you need to do for the continuity of your investment.

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Tips for Choosing IPO Stocks in 2022

IPO is the process of offering initial shares for a company to the public openly and listed on the IDX.

In 2022, it seems that there are still several companies that will be listed on the Indonesia Stock Exchange (IDX). Based on data from the IDX, each sector has one company that will conduct an IPO.

According to Equity Analyst Kanaka Hita Solvera, Andika Cipta Labora, some of the most attractive sectors for investors to pay attention to during an IPO are transportation, energy, property, and logistics.

In the energy sector, rising commodity prices are a positive financial sentiment for issuers. This will have an impact on active stock price movements.

Then for the property sector, Andhika assessed that the extension of VAT on DTP until September 2022 and the low BI interest rate would have a good impact.

On the other hand, the transportation and logistics sector has also received support from the improvement in Covid-19 cases in Indonesia. The mobility of the people who are starting to return to normal is a positive boost for the issuer.

However, the sector with the most floors on the IDX this year came from consumer cyclicals. Andhika sees this because of the impetus from the improving Indonesian economy.

For investors who are interested, tips on choosing IPO shares, it is better to read the prospectus in detail. Investors should be able to see what the funds in the IPO will be used for.

Then if an issuer uses funds for expansion and business development, then that is a positive thing.

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Long Term Investment with IPO Shares

Looking back, there were 144 companies that finally took the floor on the IDX throughout 2019-2021, with 49 issuers recording stock price increases of hundreds to thousands of percent.

Panin Sekuritas analyst William Hartanti gave tips on buying technically attractive IPO shares.

According to him, attractive IPO shares for the long term are associated with consumer good following the development of demand.

William suggested that investors who are interested in investing long-term in the latest IPO issuers, are advised to look at the financial statements for 1 year.

Because financial data can help you find out whether the issuer can make a constant profit or not. In addition, you can also see the response of market participants.

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“We also see how the response to stocks can be seen in their daily trading volume from market participants,” said William.

Basically, you can use IPO shares for long-term investments like anything else. Always remember tips on choosing IPO stocks by looking at their financial statements carefully. (R10/HR-Online)


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