(Insider Stories) - Indonesian Stock Exchange (IDX) considering to adding more requirements for companies to conduct initial public offerings (IPO). At least two potential new IPO requirements that were being discussed by the authorities.

The first requirement is an obligation to have at least 20 percent of the IPO to be allocated to the public and the second one is an obligation for publicly listed companies to have at least 15 percent of their shares issued in the free-float market. These requirements expect will finalize by the end of this year.

The idea behind the newly proposed requirements is to drive more liquidity within the market and to expand retail investors’ reach.