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Indonesia Stock Exchange Revises Rule I-A on Share Listing Requirements

PT Bursa Efek Indonesia has issued Decision of the Board of Directors of the Indonesia Stock Exchange No. Kep-00001/BEI/01-2014 on an amendment of Rule I-A (“Rule”), on 20 January 2014, coming into force on 30 January 2014, except as discussed below. The Rule sets out the IPO and subsequent share offerings requirements and procedures and listing fees. Notably the revised Rule sets out a free float policy and limits independent directors and commissioners to 2 successive terms.

Of note are the listing requirements for the two boards:

 

Main Board

Development Board

 
Point
Requirement
Point
Requirement
Minimum nominal share value
III.1.10
IDR 100
III.1.10
IDR 100
Operating in the main business
III.2.2
36 months
III.3.2
12 months
Profitability
III.2.3
Last fiscal year
III.3.5

2 year plan to reach profitability or a sector that requires longer to reach profitability

Audited financial statements
III.2.4

Last 3 years plus last 2 years and interim, if any, with an unqualified opinion

III.3.3

Last 1 year plus last 1 year and interim, if any, with an unqualified opinion

Net Tangible Assets
III.2.5
IDR 100 billion
III.3.4
IDR 5 billion

Free float (shares held by minority shareholders)

III.2.6
300 million shares, and:

·      20% if < IDR 500 billion

·      15% if IDR 500 billion to 2 trillion

·      10% if > IDR 2 trillion

pre-IPO equity value
III.3.6
150 million shares, and:

·      20% if < IDR 500 billion

·      15% if IDR 500 billion to 2 trillion

·      10% if > IDR 2 trillion

pre-IPO equity value
Shareholders (through brokers)
III.2.7
1,000
III.3.7
500
 

However, certain transitionary provisions for companies that have applied for listing prior to the amendment of the Rule exist. Such as the free float requirements of the lesser of 100 million shares or 35% for the main board (old III.2.5), and 50 million shares or 35% for the development board (old III.3.6).

The Rule also sets out an ongoing free float policy that requires: 

 
Point
Requirement

Free float (shares held by minority shareholders)

V.1

·      50 million shares, and

·      7.5%

Shareholders (through brokers)
V.2
300
 

The free float policy will come into force in 2 years time, while certain other requirements pertaining to the governance of listed companies will come into force in 6 months (V.3.2 and V.4.2: independent directors and independent commissioners can serve a maximum of 2 successive terms) and starting from 1 January 2015 (VII.3: annual listing fee).

A further clarification with regards to independent directors and commissioners has been issued by the Indonesia Stock Exchange through Circular Letter No. SE-00001/BEI/02-2014 on 4 February 2014. According to which currently serving independent directors and commissioners whose term:

  • Ends before 31 July 2014: will not have their current and past terms counted – they can serve two more terms after the conclusion of their current term.
  • Has not yet ended on 31 July 2014: will have their current and past terms counted as a single term – they can serve one more term after the conclusion of their current term.
 

Source: Decision of the Board of Directors of the Indonesia Stock Exchange No. Kep-00001/BEI/01-2014 on Rule I-A and Indonesia Stock Exchange Circular Letter No. SE-00001/BEI/02-2014

 

[Last update: 2014-02-18 17:56:42]

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