Top Market Capitalization at end-2014:

Company   Market Capitalization
Bank Central Asia          IDR 320 trillion
Astra International          IDR 301 trillion
HM Sampoerna          IDR 295 trillion
Telekomunikasi Indonesia          IDR 289 trillion
Bank Rakyat Indonesia          IDR 285 trillion
Bank Mandiri          IDR 249 trillion
Unilever Indonesia          IDR 246 trillion
Perusahaan Gas Negara          IDR 145 trillion
Gudang Garam          IDR 117 trillion
Bank Negara Indonesia          IDR 113 trillion

Source: Neraca

HM Sampoerna is one of the 40 listed Indonesian companies that fail to meet the new free float criteria. Ito Warsito, General Director at the IDX, said that this requirement (stipulated by BEI No Kep-00001/BEI/01-2014) has been formulated to increase liquidity on the stock exchange. If companies fail to meet this criteria by 30 January 2016 then they may face sanctions that include a fine, suspension or even delisting from the IDX.

Currently, American global cigarette and tobacco company Philip Morris International controls a 98.18 percent stake in HM Sampoerna through its subsidiary Philip Morris Indonesia. HM Sampoerna holds a 30 percent market share in Indonesia’s lucrative tobacco industry. Approximately 65 percent of Indonesian men consume tobacco products (roughly between 80 and 85 million people) in Southeast Asia’s largest economy. HM Sampoerna posted net sales of IDR 59.6 trillion (USD $4.8 billion) in the third quarter of 2014, a 9.1 percentage point growth (year-on-year) from the same period in 2013. Meanwhile, the company’s net profit grew 1.3 percent to IDR 7.6 trillion (USD $608 million) over the same period.

There are several steps that can be taken by HM Sampoerna to meet the new requirement for listed companies. These steps include a stock split, rights issue or delisting. Analysts expect that a stock split (either in combination with a rights issue) is the most obvious option.

Stock Quote HM Sampoerna - HMSP:

Further Reading:

Indonesian Tobacco Products Subject to Excise Tax Hike in January 2015
Higher Cigarette Excise; Indonesia’s Tobacco Industry in Trouble?
Indonesian Tobacco Giant Sampoerna Shuts down Two Cigarette Plants
Revenue or Health: Dilemma of Curbing Indonesia's Tobacco Consumption