Good News For Investors, This Company Owned By Conglomerate Eka Tjipta Widjaja Wants To Do A Stock Split 1:10

Illustration. (Photo: Doc. Antara)

JAKARTA - There is good news for investors in the capital market. The Sinar Mas Group company owned by the conglomerate Eka Tjipta Widjaja, PT Dian Swastatica Sentosa Tbk (DSSA) plans to conduct a stock split, with a ratio of 1:10.

In an information disclosure on the Indonesia Stock Exchange (IDX), quoted on Wednesday, November 17, DSSA management said that the nominal value of the company's shares after the stock split was IDR 25 per share, from the previous IDR 250 per share.

"This stock split is expected to increase investors' interest in buying the company's shares, increase the number of company shareholders, increase the company's share liquidity, and support the growth of company value," wrote DSSA Management.

In addition, with this stock split, the number of the company's outstanding shares will increase to 7.705.523.200 shares, from the previous 770.552.320 shares. To carry out this corporate action, DSSA plans to hold an extraordinary general meeting of shareholders (EGMS) on December 22, 2021.

For information, at the close of trading on Tuesday, November 16, DSSA's shares were recorded to be closed down by a correction of 300 points or 0.60 percent to the level of IDR 49.975. DSSA shares are currently one of the most expensive shares traded on the IDX.

With Tuesday's closing estimate, DSSA's share price is expected to be at the level of IDR 4.997 per share after the stock split is carried out. However, of course, the price of the stock split will be determined after the EGMS.

Meanwhile, since the beginning of the year until now, DSSA's shares have recorded an increase of 214.22 percent. This stock has a market capitalization of IDR 38.74 trillion, with a PER of 30.42 times.

The soaring share of DSSA cannot be separated from the increase in coal prices and the business entity's plan to acquire mining assets in Australia. On Monday 8 November, the management of DSSA announced that the company through its subsidiary plans to acquire Dampier Coal with a payment value of 1.35 billion US dollars consisting of three stages, or approximately IDR 18.9 trillion (estimated exchange rate of IDR 14.000 per US dollar).

The DSSA through its subsidiary, Stanmore Resources Limited, signed a sale and purchase agreement with BHP Minerals Pty Ltd (BHP) through its two subsidiaries, acquiring all of the shares of Dampier Coal (Qld) Pty Ltd (Dampier Coal).

Meanwhile, the planned share purchase transaction was carried out by Stanmore SMC Holdings Pty Ltd (SMC) which is a subsidiary of Stanmore, and BHP Mitsui Coal Pty Ltd (BMC) which has a planned relationship to acquire 80 percent economic interest with BHP.

PT Dian Swastatica Sentosa Tbk is an Indonesia-based company primarily engaged in coal mining and trading. Through its subsidiaries, the Company conducts its business which is classified into four sectors: coal mining and trading, power and steam generation, chemical trading as well as infrastructure and multimedia.