That’s a scale of annual issuance that market has never seen before and equates to roughly four times its two-decade annual average, before excluding any unreported deals or informal block trades, according to data compiled by Bloomberg. For a market already struggling with credibility issues and foreign outflows, a record issuance will add another layer of pressure.
(Feb 20): Indonesia is bracing for a record amount of share sales to meet tougher free-float rules aimed at heading off a potential downgrade to frontier market status by MSCI Inc.
The Indonesia Stock Exchange estimates that 267 companies will need to lift their public shareholdings to 15%, up from the current 7.5% minimum, implying share sales worth about 187 trillion rupiah (US$11.1 billion or $14.0 billion), according to listing director I Gede Nyoman Yetna.
