JAKARTA. PT Trimegah Bangun Persada Tbk (NCKL), a nickel mining company popularly known as Harita Nickel, will execute the shares buyback with a budget of IDR 400 billion.

The management of Harita Nickel mentioned that this corporate action is decided after considering that NCKL’s stock price has yet to reflect the true value of the company. “Although the company has shown quite good performance,” said the management.

In regard to this corporate action, the company will first ask for approval during Annual General Meeting of Shareholders (AGMS), which is scheduled to take place on June 27, 2024.

The buyback will take place through transactions in Indonesia Stock Exchange (IDX) and outside the stock exchange. In its buyback, the company has assigned PT Harita Kencana Sekuritas as its underwriter.

The source of cash that will be used for this buyback originates from internal cash of Harita Nickel. The management also reaffirmed that the company will not use IPO proceeds or loans as the fund source, thus not affecting the company’s capability to fulfil its obligations.

According to IDNFinancials data, Harita Nickel’s price at yesterday’s (21/5) session was closed 5 points higher or 0.49% to IDR 1,035 per share. Since the beginning of this year, it has shifted up 20 points or 1.97%. (KR/ZH)