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Jakarta Post

Petrochemical giant Barito Pacific to split stocks

  • Prima Wirayani

    The Jakarta Post

Jakarta   /   Fri, June 9, 2017   /   11:01 am
Petrochemical giant Barito Pacific to split stocks A styrene monomer plant owned by Chandra Asri — a subsidiary of PT Barito Pacific — which consist of two trains using both mobil-badger technology and lummus technology. (Courtesy of http://www.chandra-asri.com//File)

Diversified petrochemical giant PT Barito Pacific (BRPT) will carry out stock split measures in a bid to increase the liquidity of its stock trading.

The publicly listed company's shareholders meeting approved on Thursday to split the stocks with a ratio of 1:2 from Rp 1,000 (7.5 US cents) to Rp 500 apiece, according to the firm's official statement. The measure will be conducted around the end of this month.

"We believe this stock split will make BRPT's shares price more lucrative to investors so that the stock trading will increase," said Barito director Henky Susanto as quoted in the statement.

(Read also: Barito Pacific secures $250 million loan to acquire Star Energy Group Holdings)

Stocks of Barito, which are traded on the Indonesia Stock Exchange (IDX) under the code BRPT, closed the trading day on Thursday at Rp 3,250, 1.52 percent lower than the previous close.

The stocks' one year return stands at 588 percent so far this year, Bloomberg data shows.

The meeting also approved the appointment of Rudy Suparman as the firm's vice president director following the company's plan to acquire local energy firm Star Energy Group Holdings Pte Ltd (SEGHL).

Earlier in March, Barito, which is owned by tycoon Prajogo Pangestu, a close friend of former president Soeharto, secured a US$250 million loan from Thailand’s biggest lender by assets Bangkok Bank to support the acquisition plan.

It pledged nearly 500 million shares of its subsidiary PT Chandra Asri Petrochemical, Barito’s debt service reserve account and dividend account, among others, as collateral. (bbn)