BCA Owned By Hartono Brothers Conglomerate Plans Stock Split, Stock Prices Get Cheaper

JAKARTA - Extraordinary General Meeting of Shareholders of PT Bank Central Asia Tbk. (BCA) decided to approve the corporate action in the form of a stock split.

BCA President Director Jahja Setiaatmadja said this step was taken after observing the development of the Indonesian capital market and the increasing interest of retail investors to invest in the Indonesia Stock Exchange (IDX).

"The corporate action has been approved by the Extraordinary General Meeting of Shareholders (EGMS) which was held electronically today," he said in a press statement, Thursday, September 23.

According to Jahja, the EGMS gave approval for the stock split corporate action with a ratio of 1: 5 (1 existing shares were split into 5 new shares).

"The par value per BBCA share is currently IDR 62.5, while the nominal value per BBCA share after the stock split will be IDR 12.5," he said.

For information, the share price of the bank with the issuer code BBCA was Rp. 32,000 per share when this news was published.

Furthermore, Jahja the company is also targeting young people in this latest corporate action.

''We see that retail investors, including young investors in the Indonesian capital market, have a strong interest in investing in BBCA shares. With this corporate action, it is hoped that BCA's share price will be more affordable for retail investors," he said.

As is known, the stock split process follows the applicable procedures and conditions. After obtaining shareholder approval through the EGMS, the company will coordinate with the relevant authorities to process the stock split which is expected to be completed in October 2021.

"The corporate action of the stock split is also based on BCA's commitment to support the development of the Indonesian capital market," said Jahja.

Just so you know, the bank controlled by the Hartono Brothers conglomerate recorded a net profit of Rp. 14.45 trillion during the first semester of 2021. This achievement grew 18.1 percent year on year (yoy) compared to the same position the previous year of Rp. 12.24 trillion. .