Sampoerna launches rights issue to boost float

Philip Morris is obliged to offload part of its stake in its Indonesian unit before the nation's new free-float requirements come into effect in early 2016.
September 21, 2015

American tobacco giant Philip Morris International echoed the Indonesia Stock Exchange’s call for bigger free floats on Monday by launching a share sale worth up to Rp20.3 trillion $1.4 billion in local unit PT Hanjaya Mandala Sampoerna.

Sampoerna is Indonesia’s largest public company with a market capitalisation of Rs326 trillion. Yet, intriguingly, it is not a constituent of the Jakarta Composite Index as its free float has been below 2% since Philip Morris took over the company in a $5.2 billion deal in 2005.

Due to the low number of shares in circulation Sampoerna, Indonesia's largest cigarette manufacturer, has operated almost like a private...

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