JAKARTA. The ever-increasing price of PT Sekar Laut Tbk (SKLT) drives the management to initiate a stock split with a ratio of 1:10 in order to maintain the liquidity of SKLT’s stock trading. “Therefore, the board of directors intend to propose a stock split to improve the company’s stock liquidity,” explained John Canfi Gozal, Director of SKLT.

In the information disclosure in Indonesia Stock Exchange (IDX), Gozal confirmed that the company is initiating a stock split after the board of directors notice how SKLT’s price continues to increase as the business grows.

Since its first debut on IDX in 1993 with an IPO price of IDR 500 per share, SKLT’s price has skyrocketed 400% to approximately IDR 2,500 per share. Therefore, the board of directors of SKLT feels the need to take action to make the shares more affordable for the public. At last Friday’s (29/9) closing bell, SKLT was at IDR 2,350 per share. Year-to-date (ytd), it has increased 20.51% from IDR 1,950 at the beginning of the year 2023.

The management will then ask for approval regarding this corporate action from its shareholders through an Extraordinary General Meeting of Shareholders (EGMS) on November 9, 2023. Should this corporate action is granted approval, the stock split is scheduled to take place on November 16, 2023, while the last trading day with the old stock value is set to November 21, 2023.

The beginning of the trading with the new stock value in the regular and negotiation market is projected to take place on November 22, 2023, while the trading in the cash market follows on November 24. The number of shares is currently recorded at 690.74 million units, and is projected to proliferate to 6.09 billion post-stock-split. (AM/ZH)