Indonesia Mulls 20% Free Float For IPO of Market Cap Below $301M

Indonesia plans to set a minimum free float of 20% for companies seeking listing with a market capitalization below five trillion rupiah ($301 million) in an effort to curb price volatility.

The Financial Services Authority, known as OJK, will set lower free float thresholds for companies with a higher market value, said Inarno Djajadi, head of capital market supervision, at a parliament hearing in Jakarta on Wednesday. This would raise the free float requirement from the current level of 20% for companies with equity value below 500 billion rupiah during the initial public offering, he said.