Indonesia is preparing for US$11 billion in share sales to meet stricter free-float requirements, aiming to prevent a potential downgrade to frontier market status by MSCI Inc. The Indonesia Stock Exchange estimates that 267 companies need to increase public shareholdings to 15% from 7.5%. This initiative follows MSCI’s warning about investability and limited free float, prompting regulators to implement reforms to boost transparency and liquidity.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Indonesia sees US$11 bil in share sales to meet free-float to avoid downgrade
Indonesia is preparing for US$11 billion in share sales to meet stricter free-float requirements, aiming to prevent a potential downgrade to frontier market status by MSCI Inc. The Indonesia Stock Exchange estimates that 267 companies need to increase public shareholdings to 15% from 7.5%. This initiative follows MSCI’s warning about investability and limited free float, prompting regulators to implement reforms to boost transparency and liquidity.