JAKARTA. PT Sumber Global Energy Tbk (SGER) will distribute stock dividends totaling 4.37 billion shares or worth IDR 590.47 billion.

Michael Harold, Corporate Secretary of SGER, said that the stock dividend will be distributed in a 16:1 ratio. "For 16 old shares, you will get 1 new share," said Harold, through information disclosure on the Indonesia Stock Exchange (BEI).

In addition, other ratios will be decided by taking into account the closing price of SGER shares the day before the Annual General Meeting of Shareholders (GMS). The meeting has been scheduled for October 31, 2023.

SGER management also said that this corporate action was carried out to increase the circulation of the company's shares on the capital market. It is also believed that this can strengthen capital and support the company's business plans in the future.

For the record, the stock dividends that will be distributed by SGER are bonus shares that will be distributed to all shareholders. Stock dividends come from the capitalization of the company's retained earnings. As of December 31, 2022, the company had an undetermined retained earnings balance of IDR 760.52 billion. (KR/LM)