Bank Mandiri Plans a Stock Split With A 1:2 Ratio

Illustration of Bank Mandiri (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri (Persero) Tbk (BMRI) plans to divide the nominal value of its shares (stock split) with a ratio of 1:2. The nominal value of the shares will be split from IDR 250 to IDR 125 per share.

"Splitting the Nominal Value of Shares is proposed with a ratio of 1: 2 or 1 (one) old share with a nominal value of Rp. 250 per share into 2 shares with a nominal value of Rp. 125 per share, whereby 1 share will be retained for Series A Dwiwarna shares and the remainder will be calculated to increase Series B shares owned by the Republic of Indonesia", quoted the company's disclosure, Monday, February 6 2023.

This corporate action takes into account the market price of the Company's shares on the IDX which is affected by differences in nominal value with companies with similar business activities, so a stock split has been considered.

This is by taking into account the applicable provisions to support the increase in trading liquidity of shares on the Indonesia Stock Exchange, by increasing the number of units of shares outstanding. In addition, this action is to expand the distribution of share ownership by adjusting share prices to achieve an optimal trading range to reach various layers of investors.

This objective can be achieved without changing the amount of issued and fully paid capital, with an increase in transactions it is hoped that the Company's share price in the market will be higher than the theoretical value after the implementation of the stock split thereby increasing the value of share capitalization in the market.

This stock split will be implemented no later than 30 (thirty) days after the GMS approved the plan.

The Company will announce the Stock Split Implementation Schedule after the Company obtains approval from the GMS and/or ratification from the Minister of Law and Human Rights for the amendment to Article 4 of the Company's Articles of Association and the Company has fulfilled all the requirements in POJK No.15/2022 and the requirements for listing additional shares and after obtained approval for the listing of additional shares from the Indonesian Stock Exchange.

From VOI's monitoring, during today's trading BMRI's share price was in the range of IDR 9,900 to IDR 10,050.