Sinar Mas won't proceed with follow-on offering

After a two-week management roadshow in Asia, Europe and the US, Sinar Mas Multiartha has decided not to proceed with a follow-on offering that would have helped to increase its free-float and was intended to bring in at least $175 million of fresh capital.

The Indonesian company, which is the finance arm of the Widjaja family-controlled Sinar Mas group, never launched the bookbuilding and according to sources it won’t be doing so at this point in time. A key reason is that the company had to adhere to a minimum floor price that was higher than what investors were prepared to pay, making a deal in its current form...