JAKARTA. PT Avia Avian Tbk (AVIA) will continue its share buyback program after its share price rose 14.2% to IDR 500 per share, just 2 weeks after the share buyback program started.

For the record, the AVIA share buyback program has been running since the end of December 2023. The funds prepared by the company are IDR 1 trillion.

Meanwhile, the total number of shares ready to be repurchased by AVIA is a maximum of 1.42 billion shares or the equivalent of 2.3% of the fully paid-up and issued capital. The number of shares bought back by the company is still 7.3% of the target.

Nevertheless, AVIA Management believes that currently the company's share price still does not reflect the value, performance and fundamentals of the company's business. This takes into account the company's position as a leader in the decorative paint market, with a distribution network spread throughout Indonesia.

Moreover, judging from AVIA's Price to Equity (PER), it is currently below the 20x level. "It is lower compared to the average PER of similar industries in the Asian region which reaches around 30x-50x," explained AVIA Management, in its official statement today.

With this share buyback program, AVIA management hopes to increase trust and provide a good rate of return to shareholders. Apart from that, this program is expected to attract more retail investors. (KR/LM)