Jakarta, ThedailyID — Shares of Chandra Asri Pacific Tbk (TPIA) could attract more institutional investors after the company’s free float increased to around 25.7%.
Senior Investment Information Analyst at Mirae Asset Sekuritas Indonesia, Nafan Aji Gusta, said the market has responded positively to the increase in publicly held shares. According to him, a higher free float improves stock liquidity and increases investor interest.
He explained that pension funds, asset managers, and global investment funds often consider free float levels before investing. Stocks with larger public ownership generally meet the requirements of more institutional investors.
“When a company’s free float exceeds certain thresholds, such as 15%, the stock becomes more investable for many institutional investors,” Nafan said.
Moreover, the higher free float could increase the potential for larger capital inflows into TPIA. It may also strengthen the company’s position in major global indices.
Nafan noted that free float remains an important factor in calculations by MSCI and FTSE Russell. Therefore, a higher weighting could improve TPIA’s visibility among global investors.
Consequently, passive funds that track MSCI and FTSE benchmarks may increase their holdings in the stock. That could create additional buying interest over time.
In addition, Nafan believes the higher free float could boost investor confidence when the company seeks funding. Future fundraising could include rights issues or bond offerings.
“A broader investor base and stronger liquidity can increase market support for future fundraising activities,” he said.
Earlier, the Indonesia Stock Exchange announced that TPIA had joined the Main Board. Previously, the company was listed on the Development Board.
The move placed TPIA among 26 issuers promoted to the exchange’s highest listing tier. As a result, the company now stands alongside some of Indonesia’s largest publicly traded firms.
Responding to the announcement, Erwin Ciputra thanked the exchange for its confidence in the company. He said the promotion reflects TPIA’s commitment to strong fundamentals, good governance, and sustainable growth.
Erwin added that the Main Board listing provides new momentum for the company. The group plans to create long-term value through its energy, chemical, and infrastructure businesses.
Looking ahead, the company will focus on operational performance and competitiveness. It also plans to expand sustainably, create jobs, and strengthen value for shareholders and stakeholders.
