Stock-splitting became a method of choice for some prominent companies to gain more capital in 2020. This phenomenon aims to increase the number of shares, broaden its market segment, and encourage its stock liquidity in the stock market.

PT Unilever Indonesia Tbk (UNVR) became the first giant corporation to split stock on 2nd January 2020 with a 1:5 ratio. It means that 1 share is split into 5 new shares. Initially, Unilever issued 7.63 billion shares, but this number multiplied five times to 38.15 billion after the split. Unilever performed stock-split as one of their efforts to increase the liquidity of company shares and to make the price more affordable for retail investors. However, its share price has decreased 23% since the split, amounting from Rp8,550/share to Rp6,575/share on 31st March 2021.

In February, PT Fast Food Indonesia Tbk (FAST), which owned the biggest fried chicken chain in Indonesia "KFC", also performed a stock split to gain more capital. They will also hold the right issue funding to gain more capital to open new stores and to renovate stores that are 5 years old or older. KFC split their stock with a 1:2 ratio, from 1.99 billion shares to 3.99 shares after the split. By the end of March 2021, its share price has decreased 11.63%, from an initial Rp1,160/share to Rp1.025/share.

The next company on the list came from the textile industry. After experiencing a big hit from the pandemic, PT Trisula Textiles Industries Tbk (BELL) decided to split stock with a 1:5 ratio. This move was expected to increase the number of investors from 1.45 billion to 7.25 billion shares. They also expected to get new investors to invest in Trisula Textile and expand their retail business, especially in the uniforms segment. Trisula Textile's share price showed a slight decrease from Rp149 to Rp140/share at the end of March 2021.

PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) or known as Sido Muncul, also performed stock-split in September 2020. The 1:2 ratio split aimed to increase share liquidity and gain more retail investors. The share price was relatively stable, only decreased 3% by the end of March 2021, from Rp810 to Rp785/share. In total, Sido Muncul has issued 30 billion shares after the split.

PT Arkadia Digital Media (DIGI), an online portal and online content provider company, joined the line of stock-split in November 2020. Even though they just went IPO in 2018, they decided to split stocks with a 1:5 ratio with the hope that the new price would attract more investors, especially retail investors.  The share price became Rp428/share after the split but has decreased 7% to Rp396/share by the end of March 2021.

Last but not the least, PT MNC Studios International Tbk (MSIN) or MNC also performed a stock split with a 1:2 ratio in December 2020. This giant media corporation split their 5.20 billion to 10.40 billion shares, at Rp182/share on the listing date. This move was a response to the increase of demand for content on OTT and TV FTA, especially original content and animation. They expected to capitalize on that demand by increasing production. By the end of March 2021, the MNC share price was recorded at Rp152/share or decreased 16% from the initial price. (KD)