Indonesia Faces Record Share Sales to Meet Free-Float Goal

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 ($11.1 billion), according to Listing Director I Gede Nyoman Yetna.