Currently, Philip Morris owns 98.18 percent of HM Sampoerna’s shares, leaving only 1.82 percent available to the public. However, per January 2016 all listed companies on the Indonesia Stock Exchange are required to have a free-float of at least 7.50 percent. In order to comply with new rules, HM Sampoerna announced to conduct a 4-for-65 rights issue in October 2015 in which it aims to raise IDR 26.7 trillion (approx. USD $1.9 billion) and thus could become the largest rights issue to be carried out in Southeast Asia this year (and the largest ever in Indonesia, surpassing the USD $1.3 billion raised by Bank Mandiri in 2011). HM Sampoerna, together with its parent company Philip Morris Indonesia, held roadshows in Indonesia and abroad to attract institutional investors. On 18 September 2015 an extraordinary shareholder meeting is scheduled to be held in Jakarta in which the matter is to be discussed.

The joint global coordinators of HM Sampoerna’s offering are the Goldman Sachs Group Inc and JPMorgan Chase & Co while Citigroup Inc, Credit Suisse Group AG, and Mandiri Sekuritas are the joint book runners. It was reported earlier that investor orders will be received in the period 21 September - 2 October 2015 with the pricing to be set in late September. Part of proceeds will be used to repay working capital facilities.

HM Sampoerna, one of Indonesia’s largest companies in terms of market capitalization, controls about 34 percent of Indonesia’s tobacco market with its seven manufacturing facilities: two machine-made kretek production facilities and five hand rolled kretek production facilities (kretek cigarettes are the highly popular clove cigarettes that are a trademark of Indonesia). The company produces some of the country’s most famous kretek cigarette brands, such as Sampoerna Hijau, Sampoerna A Mild, and the legendary “King of Kretek” Dji Sam Soe.

So far this year (up to 4 September), shares of HM Sampoerna have climbed 9.69 percent. This is in stark contrast to the performance of Indonesia's benchmark stock index (Jakarta Composite Index) which has fallen 15.53 percent over the same period.

Stock Quote HM Sampoerna - (HMSP):

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

Further Reading:

Smoking in Indonesia: Government’s Mixed Tobacco Control Policies
HM Sampoerna Studying Higher Free Float on Indonesia Stock Exchange
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