JAKARTA - PT Asuransi Multi Artha Guna Tbk (AMAG) is allocating IDR 63.10 billion to repurchase its shares (buyback) of a maximum 189.17 million shares. This plan will be further decided during the Extraordinary General Meeting of Shareholders (EGMS) next Thursday (25/4).

In the prospectus quoted today (23/4), the buyback will be arranged and led by PT CGS-CIMB Sekuritas Indonesia, in which the offering price will be set to a level lower or equal to the previous transaction price. This corporate action will take place no later than 12 months after securing shareholders’ approval this week.

The buyback is projected to boost the liquidity and its stock price. Yesterday (22/4), AMAG’s shares peaked at IDR 318, and the lowest was recorded at IDR 310 per share. The stock price, until the closing bell, was recorded at IDR 314 per share.

The source of fund for this corporate action is said to be taken out of its internal cash.

Prior to this, the company had terminated the buyback period based on the EGMS on June 22, 2023, last week (17/4). It is carried out in order to gain new approval for a new buyback round for the next 12 months. (LK/ZH)