JAKARTA. PT Lippo General Insurance Tbk (LPGI), an insurance company under Lippo Group, will hold a stock split with a ratio of 1:10. 

Satini Kartika Sari, Corporate Secretary of LPGI, confirmed that the nominal value of the share will be reduced to IDR 50 per share after this stock split, from the initial IDR 500 each. However, the stock will increase to 3 billion shares from the previous 300 million.

In its official statement, LPGI believes that the stock split will drive the liquidity of shares trading in Indonesia Stock Exchange (IDX). Furthermore, this corporate action is meant to raise free float portion of the company.

According to IDNFinancials data, PT Hanwha Life Insurance still controls 59.46% of LPGI as of June 30, 2024. Then, PT Inti Anugerah Pratama has another 23%, followed by Hanwha General Insurance Co. Ltd. with 14.9%, while public investors only claim 2.64% of the shares.

It is worth mentioning that the management of LPGI will first ask for approval from Extraordinary General Meeting of Shareholders for this stock split plan. The meeting is scheduled to take place on August 21, 2024. (KR/ZH)