Indonesia restricts IPO subscription size to curb stock price volatility.

The Indonesian regulatory agency has set a limit on the number of shares that investors can purchase during an initial public offering in order to curb stock price fluctuations. The Financial Services Authority of Indonesia stated in a notification letter that a single investor can subscribe up to 10% of the total number of shares offered during an IPO. This policy took effect on November 17, the date of the announcement. Previously, there were no restrictions on IPO orders. This new regulation aims to address the issue of stock price volatility in small IPOs, as "some institutions may order a large amount of shares, and if they decide to sell these shares, it may increase the risk of price fluctuations in the secondary market," the regulatory agency explained in a separate statement.