JAKARTA (Yosefardi) – Six listed companies plan buy back of their shares following the market’s authority initiative to allow the company buying back shares without seeking approval of shareholders.
PT Gajah Tunggal Tbk (GJTL) allocates Rp349.35 billion for buying back maximum 174.24 million shares, representing 5% of its total issued shares. The buy back of shares is scheduled for September 5, 2013 until December 4, 2013.
PT Ramayana Lestari Sentosa Tbk (RALS) also allocates Rp150 billion for buy back program, at maximum price of Rp900 per unit, conducted during September 5, 2013 until December 4, 2013.
PT Panin Bank also has buy back program for its shares, starting today until December 3, 2013, with maximum allocated funds of Rp150 billion. It will buy its shares at price of Rp500-700 per share. This buy back program would impact on the bank’s capital adequacy ratio expected to reach 16.72%.
PT Budi Starch & Sweetener Tbk also allocates Rp25 billion for buying back 5% of its shares while state construction firm PT Wijaya Karya Tbk (WIKA) prepares 120 billion for buying back 20% of its shares.
The Financial Service Authority (OJK) had in Friday last week (August 23) issued new rule allowing a listed company to launch a buy back of shares without seeking approval from shareholders for a maximum of 20% of total company’s paid-up shares capital.
This is an effort to minimize the current significant fluctuation of capital market. A significant fluctuation means the composite index of the Indonesia Stock Exchange (IDX) dropped by 15% or more in past three consecutive trading days.
The company could launch buy back of shares after making a disclosure to IDX within 7 days since 15% price drop as ruled. The buy back would be only made within three months from date of disclosure.
Meanwhile, PT Media Nusantara Citra Tbk (MNCN) has on Tuesday (Sep 3) bought back 910,000 shares at price of Rp2,805, or Rp2.55 billion in total. (yohanneso@yosefardi.biz)