JAKARTA (The InsiderStories) – Indonesia Stock Exchange (IDX) said a total of 13 issuers to comply the minimum 7.5 percent of free float requirement in this year, said the director yesterday. The issuers belonging to conglomerates and state-owned enterprises and some choose a strategy sell some shares to the strategic partners.
IDX’ director, I Gede Nyoman Yetna, said that currently four issuers have started the process and nine companies are in the process of finalizing their compliance plans. According to him, if the issuer has not been able to meet the provisions until the stipulated time, the regulator will impose sanctions.
Several companies has the plan are PT BanK Syariah Indonesia Tbk (IDX: BRIS), PT Golden Energy Mines Tbk (IDX: GEMS), PT Bank Permata Tbk (IDX: BNLI), PT Plaza Indonesia Realty Tbk (IDX: PLIN), PT Solusi Bangun Indonesia Tbk (IDX: SMCB), PT AirAsia Indonesia Tbk (IDX: CMPP), PT Austindo Nusantara Jaya Tbk (IDX: ANJT).
After merger of PT BRI Syariah Tbk with PT Bank Syariah Mandiri and PT Bank BNI Syariah, the public share of BRIS remaining 4.4 percent from previously at 18.47 percent. It said, the shares will offer through the Indonesia Investment Authority and potential to reap $500 million.
Then, Sinarmas Group through Golden Energy and Resources Ltd., (SGX: GEAR) is preparing to sell a 4.5 percent stake of Golden Energy to Ascend Global Investment Fund SPC. Currently, the coal miner’ free float is only 3 percent. The company shares have been suspended by the local bourse since Jan. 31, 2018.
While, the sale shares to strategic partners was also pursued by Solusi Bangun to Taiheiyo Cement Corp. The Japanese company has acquired 15 percent of the subsidiary of cement producer, PT Semen Indonesia Tbk (IDX: SMGR) for $220 million. Currently, the public ownership is only 1.69 percent. The issuer will request the shareholder permission on March 30.
Other companies Plaza Indonesia, Bank Permata, and AirAsia Indonesia had conveyed their commitment to fulfill the free float shares program. The public ownership of each issuer is recorded at 2.99 percent, 1.29 percent, and 1.59 percent, respectively.
The bank’ free float decreased after Thai-based Bangkok Bank Plc., has acquired Bank Permata shares from PT Astra International Tbk (IDX: ASII) and British’ Standard Chartered Plc in October 2020. On April 27, 2021, the lender targeting to get approval on the planned. The maximum number of new shares to be issued around 88 billion shares.
In addition, Austindo Nusantara plans to increase the number of outstanding shares through free float program in this year. Currently, the percentage of public shares still relatively small around 7.6 percent. said the finance director, Lucas Kurniawan on Jan. 14, 2021.
in 2020, IDX has drafted a new regulations for the issuers that have plan to increase the share through a free float shares. The initiatives is part of the regulator effort to encourage them to comply the regulation and to increase capital market liquidity.
The free float regulation is based on the Decree of the IDX directors Kep-00183/BEI/12-2018 concerning Listing of Shares and Equity Securities Other Than Shares Issued by Listed Companies. The regulation was published on Dec. 26, 2018 and took effect from Dec. 27, 2018.
“We want to encourage issuers to increase their free float portion rather than just fulfilling the current minimum obligations,” said the director, Hasan Fawzi, in October 2020, by adding the self regulatory organization is also preparing new regulations regarding the reduction of the annual listing fee and a tax cut.
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