JAKARTA - PT Jembo Cable Company Tbk (JECC) will split its stock with a ratio of 1:5 in order to maximise the liquidity of its stock in the market.

Antonius Benady, Corporate Secretary of JECC, said that the company will first ask for approval during the Extraordinary General Meeting of Shareholders next month (22/5). “It had obtained a principal approval from Indonesia Stock Exchange (IDX) last month (18/3),” he said in the information disclosure quoted Tuesday (30/4).

According to Benardy, in addition to increase the stock liquidity, this corporate action will make the stock more affordable, which is related to JECC’s intention to meet the minimum free float requirement.

With the ratio of 1:5, each share will be split into 5 shares with new face value, meaning that one share of IDR 500 will be 5 of IDR 100 each. Furthermore, the number of shares post-stock split will also rise to 756 million from the initial 151.2 million shares.

As of March 2024, the shareholder structure consists of PT Indolife Pensiontama of 17.58%, followed by Fujikura Ltd of 13.51%, Fujikura Asia Limited of 6.49%, PT Monaspermata Persada of 52.57%, and the public of 9.85%.

Yesterday (29/4), JECC was spotted with a transaction price of IDR 3,790 per share. Approximately 900 shares were being traded in 4 transactions with IDR 3.41 million. Foreign sell and buy were reported nil. (LK/ZH)