JAKARTA. PT Provident Investasi Bersama Tbk (PALM), an investment company under PT Provident Capital Indonesia, has secured approval from its shareholders for its buyback plan of 162 million shares.

The number of shares to be repurchased by the company is equal to 1.03% of its issued and paid-up capital. This corporate action will take effect gradually for no longer than 12 months, starting from the day the company obtained approval from Extraordinary General Meeting of Shareholders today (26/6).

It is worth mentioning that PALM had announced the buyback plan in May 2024. In its official release, the company will allocate approximately IDR 80.61 billion for shares buyback.

“The buyback is aimed to improve PALM’s stock performance to be more stable, providing greater flexibility to manage long-term capital, attain a more efficient capitalisation structure, and giving sustainable return to shareholders,” added Tri Boewono, President Director of PALM, in the official release.

In addition, Boewono said that PALM also has several opportunities to carry out other corporate actions in the near future, ranging from the issuance of Shelf-Registration Bond II of PALM, which still records a limit of IDR 4.17 trillion, to boost business growth inorganically or through acquisition.

According to IDNFinancial data, PALM had just conducted a rights issue last April 2024. In this corporate action, the company issued 8.65 billion new shares and raked in extra capital of IDR 3.61 trillion. (KR/ZH)