JAKARTA – PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) has announced plans to repurchase (buyback) 450 million shares, equivalent to 1.5% of the company’s issued shares.

For this corporate action, SIDO will allocate up to IDR 300 billion, which will be sourced from the company’s cash reserves. This indicates a projected buyback price of IDR 666.67 per share.

Additionally, as disclosed to the Indonesia Stock Exchange (IDX) today (17/3), SIDO will cap the buyback price at IDR 760 per share to comply with POJK No.29/2023.

“The Share Buyback Plan considers that the company’s current stock price does not reflect its fair value based on the company’s performance,” SIDO’s management stated in an official release.

As of 3.47 PM WIB today (17/3), SIDO’s stock price increased by 0.93% to IDR 545 per share. However, since the beginning of the year, the price has fallen by 6.84%, and it has plunged by 9.17% over the past year.

This is despite SIDO reporting a 23.18% year-on-year (yoy) surge in net profit to IDR 1.17 trillion in 2024, with revenue growing moderately by 9.9% to IDR 3.92 trillion.

It is worth noting that the buyback plan is still awaiting approval from SIDO’s shareholders at the upcoming Annual General Meeting of Shareholders, scheduled for 2 May 2025.

The buyback will then take place within 12 months after said corporate action plan was approved by its shareholders. (ZH)