Sinar Mas won't proceed with follow-on offering

A restrictive floor price and the lack of a track record in its life insurance joint venture force the financial arm of Indonesia's Sinar Mas group to cancel its planned equity capital raising.
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The stock exchange's bull statue captures the mood in Indonesia, but investors are still selective (AFP)
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<div style="text-align: left;"> The stock exchange's bull statue captures the mood in Indonesia, but investors are still selective (AFP) </div>

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...

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