JAKARTA. PT Bank Negara Indonesia (Persero) Tbk (BBNI) or BNI had finished its shares buyback of 24.68 million units that had started back on July 22, 2021.
According to Mucharom, Corporate Secretary of BNI, his company had splurged IDR 128.03 billion for this buyback, ending this Friday (22/10). The amount of the expenditure was less than the actual budget set previously by the company.
Based on idnfinancials.com data, BNI had prepared a budget of up to IDR 1.7 trillion to perform this shares buyback. That allocation had been planned to buy at most 20% and at least 7.5% of its shares outstanding.
One of the reasons behind this corporate action by BNI is to enhance the Price to Book Value (PBV) of its shares. For the record, prior to the buyback, the PBV of BBNI was reported to arrive at 0.75. It is much lower than the average PBV of BBNI within the past 10 years of 1.60.
Additionally, in today’s trading session, BBNI’s stock price closed strongly, increasing 1.38% or 100 bps to IDR 7,325 per share. BBNI’s stock price had indeed solidified by up to 42.23% or 2,175 points within the past month. (KR/ZH)