Mixed international reception to Indonesian share sales

The placement portion of Bank Mandiri's rights issue attracts more than $3 billion of international demand despite being priced at a tight discount to Terp. Meanwhile, Garuda Indonesia's IPO is bought mainly by domestic accounts.

After a one-day delay, the share placement in Indonesia’s Bank Mandiri was priced at Rp5,250 per share, which equals a 5% premium to the price of the forthcoming rights issue and resulted in a total placement size of Rp8.3 trillion $904 million. The placement was made up of the shares that the Indonesian government would have been able to buy in the rights issue if it had taken up its entitlement in full. However, as part of a broader plan to reduce the state ownership in the country’s flagship companies, the government chose not to buy any shares in the rights issue.

While priced extremely tight the rights issue price has been fixed at...

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