JAKARTA - PT Telekomunikasi Indonesia (Persero) Tbk (TLKM) or Telkom plans to change the par value of shares by having a stock split in order to increase the liquidity of its shares in the market.
Finance Director Telkom Honesty Basir said the plan has been agreed upon by the Company's shareholders through the Annual General Meeting of Shareholders (AGM), on Friday, April 19, 2013.
"We wanted to do a stock split, thus TLKM price will be reachable by retail investors and it can be more liquid in market later," said Honesty.
He said the ratio of the stock split is one in five (1:5). With this ratio, the nominal value of TLKM shares will be Rp50 per share from the current Rp250 per share. The number of shares will increase to 100.5 billion from 20.1 billion to 100.5 billion shares.
According to President Director of Telkom Arief Yahya, TLKM current share price has exceeded the psychological level. So the Company will conduct a stock split.
“TLKM already exceeded its psychological level of Rp 10,000 per share. Related its plan, to conduct stock split, we also have to report to the Ministry of State-owned Enterprises, and we expected to immediately get the permission to conduct the stock split. Let's wait for the decision of the Ministry of State-Owned Enterprises on its realization,"he added.