(Bloomberg) -- The Indonesia stock exchange is exploring some possible adjustments to its existing free float regulation, according to local news portal Kontan.
Among the issues under consideration include the criteria for shares designated as free float during the initial public offering, the report said on Tuesday, citing I Gede Nyoman Yetna, listing director at the local bourse. Authorities will look into the number of shares offered to the public.
The regulator’s comments came amid the recent deletion of PT Barito Renewables Energy from FTSE Russell indexes a day after the stock was added. The index compiler cited “high shareholder concentration” for the removal of one of Indonesia’s largest companies from its gauges.
The power producer, owned by tycoon Prajogo Pangestu, saw more than 500 trillion rupiah ($33 billion) wiped out from its market capitalization over two days after FTSE’s announcement late last week.
Barito said as much as 11.7% of its shares met the bourse’s free float requirement as of Sept. 19. The company added that it had published its shareholding information to the exchange during the IPO in 2023.
The company’s shares edged higher on Tuesday after falling by the daily limit in early trading.
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