JAKARTA. Attempting to stabilise its stock price, PT Nippon Indosari Corpindo Tbk (ROTI) plans to repurchase 300 million of its shares (buyback) for IDR 480 billion. It will start today (21/10) and continue for the next three months until January 20, 2022.
Based on the notification letter sent to OJK and Indonesia Stock Exchange (IDX) on Tuesday (19/10), the buyback plan is intended to stabilise the price amidst the fluctuating market condition. Additionally, the shares buyback could offer flexibility to the company in managing long-term equity as the treasury stock could be resold with a maximum price should the company need additional capital one day.
Arlina Sofia, Director of Nippon Indosari, also claimed that the buyback would not have any effects on ROTI’s revenue and the company in general. After all, the fund resources used in this action come from the company’s internal cash.
ROTI set the purchasing price of the shares to IDR 1,600 each. PT BCA Sekuritas is the selected security company that would assist ROTI in this buyback. (AM/ZH)