Bank Syariah Indonesia to Issue USD 500 Million New Shares to Effectuate Free Float Rules
March 15, 2021
Email Bank Syariah Indonesia (BSI) has planned to fulfil free float shares regulations by releasing new shares worth USD 500 million. This is expected to take place via a rights issue.
Why it matters?
The capital market rules at the Indonesian Stock Exchange state that the public must own at least 7.5% of a publicly listed company. Following the merger of Bank BRI Syariah, Bank Syariah Mandiri and Bank BNI Syariah, public shareholding fell from 18.47% to 4.4%. Through the issue of shares, the Government of Indonesia and the Indonesian Investment Authority hope to give an opportunity for foreign investors to own shares of BSI. An international Indonesian Bank can lead to significant development of businesses within the country.
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