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IDX Plans to Revise Free Float Rule for IPOs, What’s the Game?

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Algo Research Team


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Key Summary:


  • IDX plans to apply minimum free float based on market cap
  • The policy aims for larger-sized IPO to boost market liquidity
  • Expects reduced volatility & market risks from smaller IPO

Indonesia Stock Exchange (IDX) is planning to revise the minimum free float requirement for companies conducting an initial public offering (IPO) in the capital market.


What’s the buzz? Previously, the calculation for the minimum free float threshold was based on equity value. Going forward, IDX plans to shift the requirement based on the company’s market capitalization.


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