BCA arranges a stock split with a 1:5 ratio
JAKARTA. PT Bank Central Asia Tbk (BBCA) is planning to divide the face values of its shares or perform a stock split with a 1:5 ratio. It is intended to attract millennial investors to participate in BCA’s stock acquisition.
Raymon Yonarto, Corporate Secretary of BCA, explains that this decision was made after receiving many requests from young investors for BCA to consider stock-splitting as its current price is deemed quite expensive. “BCA’s stock price has indeed reached IDR 30,000. It seems like a pretty significant amount for them; it is too costly,” Yonarto elaborated further during a live public expose yesterday (8/9).
Furthermore, the majority of BCA’s stock ownership is institutional. Thus, splitting the stock might give chances to retail investors in participating.
Yonarto also reassured that the stock split would not fundamentally affect the company. It would only change the face value of the shares from IDR 62.5 to IDR 12.5 each. This stock split arrangement will be further discussed during the Extraordinary General Shareholders Meeting on September 23, 2021. (AM/ZH)