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What Makes IPO Preparation So Challenging? Six Issues Companies Commonly Underestimate
Avoid common IPO preparation pitfalls. Learn about the six challenges companies often underestimate.

What Makes IPO Preparation So Challenging? Six Issues Companies Commonly Underestimate

August 2025

An Initial Public Offering (IPO) is more than a milestone, it’s a transformation. It marks the moment a company steps into the public spotlight, gains access to broader capital, and earns long-term market credibility. In Indonesia, enthusiasm around IPOs continues to grow. By the second half of 2025, companies had already raised Rp70.1 trillion from public offerings—a 100% increase from 2024.

But going public isn’t just a financial leap, it’s a test of a company’s internal readiness. IPO preparation often reveals gaps that may have been manageable in private, but are unsustainable under public scrutiny. Here are six challenges companies commonly underestimate:

1. Audited Financials Across Multiple Years

Before listing, companies must submit three years of audited financial statements, plus an additional interim audit no older than six months. These requirements, set by Indonesia’s Financial Services Authority (OJK) and Indonesia Stock Exchange (IDX), often uncover inconsistencies in revenue recognition, asset classification, or historical adjustments. Addressing these issues late in the process can result in delays and credibility risks.

2. Misalignment Across Internal Stakeholders

IPO preparation requires coordination across financial, legal, tax, and compliance functions. Without a clear plan and well-defined responsibilities across teams, key tasks can stall or be overlooked, especially during busy periods such as year-end closings.

3. Gaps in Governance Structures

Public companies must implement structured governance, including independent board members, audit & nomination committees, and clear reporting lines. Many private firms operate informally, which does not meet public market standards. Thus, transitioning to structured governance often requires not just procedural changes, but also cultural shifts across leadership teams.

4. Prospectus Accuracy and Documentation

The IPO prospectus must reflect the company’s full operational, legal, and financial standing. This includes shareholder structure, business licenses, financial forecasts, and third-party validations. Incomplete and inconsistent documentation can slow down regulator approvals and erode investor confidence.

5. Immediate Post-IPO Reporting Obligations

Once listed, companies must publish annual audited reports within three months of year-end and submit quarterly or interim reports within 30 to 60 days, as IDX Rule I?EPOJK No.?29/POJK.04/2016. These requirements apply regardless of company size, and businesses that still rely heavily on manual systems often struggle to meet these deadlines consistently.

6. Organizational Culture Must Evolve

An IPO introduces greater transparency, structured decision-making, and external accountability. Teams must quickly adapt to new rhythms and expectations quickly. Without clear internal communication, cultural resistance can hinder post-IPO performance.

 

Moores Rowland Indonesia: Your Partner in IPO Readiness

Moores Rowland Indonesia offers integrated IPO advisory services to support a company at every stage of the listing process. We help companies not only meet technical requirements, but also build the internal resilience needed for long-term success after their IPO.

Our services include:

  • Financial Statement Reviews, ensuring PSAK/IFRS compliance and audit readiness
  • Internal Control & Risk Assessment, strengthening control frameworks and identifying key vulnerabilities
  • Governance & Audit Advisory, establishing structures that align with regulatory and market expectations
  • IPO Readiness Assessment, uncovering operational, legal, and financial gaps that may hinder listing success

 

Need support with your IPO preparation? Moores Rowland is at your service.

We provide end-to-end support, from financial statement reviews and governance alignment to regulatory compliance and internal readiness, all tailored to your company’s needs. Get in touch with our team at contact-jakarta@moores-rowland.com or contact-bali@moores-rowland.com for a free consultation.