PT Danatama Makmur (Danatama) has earned itself a reputation as a dynamic, innovative and successful investment bank, and is now one of the finest and most respected companies in the Indonesian capital market, over three decades of its operations. It was founded in April 1984 and was granted brokerage, underwriting and fund management licenses by BAPEPAM & LK (the Capital Market and Non-Bank Financial Institution Supervisory Agency) in 1992. Ever since, it has grown rapidly to become one of the leading investment banks in Indonesia’s capital markets, both for primary and secondary offerings, as well as a notable advisor in various major corporate action activities.
The company’s major strengths lie in its three decades of experience in the Indonesian capital markets, sharing an in-depth, local expertise. It forges close ties with its clients, understanding their needs for rapid deal implementation and is well known of its responsiveness towards clients’ immediate needs. Danatama has built a sizeable network as well as a top quality client base of both investors and companies, together with all of its main stakeholders.
Danatama specializes in underwriting the issuance of equity and debt instruments, arranging rights issues and other capital raising measures, and providing corporate finance services for merger and acquisition (M&A) transactions. Its expertise also extends to cover venture capital, project finance and structured finance, and it has an active brokerage and trading divisions, supported by a large client network and a highly regarded research team. Central to Danatama’s strategy is maintaining and developing client relationships. The sales department also works closely with the Bank’s institutional and corporate clients, providing timely investment advice based on its proprietary research product.
Since its inception in 1984, Danatama has engaged in a broad range of activities including IPO, rights issue, equity and bond underwriting and placement, M&A, and venture capital investment. Acting as financial advisor in complex transactions that have marked some of the largest M&A, rights issue and IPO deals ever in Indonesia, Danatama has been consistent in assisting its clients in facilitating and advising on notable transactions, in spite of the challenges introduced by the global credit crunch that led to a global decline in deal flows.
Notably in the past six years since 2004, Danatama has set an impressive market footprint in the capital market of Indonesia and across Asia Pacific and has proven its ability to consistenly provide professional and outstanding service to its clients. Having continuously set new standards in service and advice, Danatama has been acknowledged and awarded, among other recognitions, “Best Equity House in Indonesia” by various leading, reputable and global institutions and has since been on the top rank of various league tables of Bloomberg, Thomson Reuters and Dealogic from M&A Financial Advisory and Underwriter League Tables. Throughout its presence in the market, Danatama’s widespread experience in both equity and debt placements of private and public companies in various industries is based on the foundation of a strong and dedicated relationship with both domestic and international clients and investors.
Danatama’s three main divisions – investment banking and research, asset management, and brokerage and trading – operate closely to maximize its clients’ benefits. The bank advises many prominent companies from a broad range of industry that were affected by the financial crisis over a decade ago. During the current financial volatility, Danatama anticipates that a growing number of domestic firms will intensify their hunt for funding, restructuring and M&A deals. Danatama is perfectly placed to provide these companies with premier corporate finance advisory services for M&A, equity financing, project finance, and the structuring of asset-backed securities.
M&A, in particular, offers viable solutions for market expansion in lean and challenging times. And with a network that extends offshore to the world’s leading financial centers, Danatama is ideally placed to advice on cross-border transactions. As a result of the current volatility in global markets, many companies have had to resort to financial restructuring to position themselves for future growth. Indonesia is a vibrant, democratic nation with a population of more than 230 million, and a vast land mass extending across an archipelago rich in natural resources. The country boasts a GDP growth rate of around 6% and a healthy balance of payments surplus which has fueled its foreign exchange reserves.
Danatama is ideally positioned to take the advantage of this new business environment by consistently responding in a flexible and innovative manner. The bank’s reputation for innovative financial restructuring and solutions places itself strategically among the leading domestic investment banks. For instance, in the past few years, during the bank loan assets disposal programs of the Indonesian Bank Restructuring Agency (“IBRA”), Danatama ranked second among the twenty largest institutional investors that participated in the credit disposal program.
Danatama deals closely with numerous financial institutions, including investment banks and insurance companies, helping them tailor their investment agenda according to their specific requirements and matching their funds to the needs of several hundred listed companies. In fact, Danatama has been instrumental in helping companies and institutions in Indonesia raise more than US$15 billion of capital through the placement of equities, bonds and convertible bonds. It also raises finances through private placements, structured finance, and strategic and financial advisory services. Danatama provides both a wealth of acquired knowledge and a far-flung network among local and international investors to make capital raising both an uncomplicated and rewarding experience for its clients.
Danatama also provides portfolio investment management services to both institutional and individual clients. Each of its client’s portfolios is managed in line with their particular investment objectives and constraints, creating unique – customized investment plans, fitting the client’s risk of return profile. In the current environment, where companies are struggling, it is inevitable that opportunities for M&A activity will grow and continue to expand. Consolidation is called for where competition is stiff, especially in the telecommunications and banking sectors, as well as in the natural resources sector, led by coal mining. Danatama, through its private equity and venture capital divisions, also takes minority stakes in companies, with a holding period of one to two years. It advises both the selling and buying parties and has a large balance sheet to provide for a pre-IPO bridge financing.
Danatama has attained its present reputable position in the investment banking industry by nurturing a long-term relationship with customers and its continuous dedication to providing personalized services for almost three decades. More than anything else, it understands that its own success depends on the success of its clients; both parties share a common goal. As an ambitious investment bank striving to continue to expand its market share, Danatama works hard to provide its customers with the most optimal and trusted services.