There will be a stock split with a ratio of 1:5, this is the prospect of Bank BCA (BBCA) shares going forward

Reporter: Akhmad Suryahadi | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. PT Bank Central Asia Tbk (BBCA) plans to take corporate action, namely by splitting the nominal value of shares (stock split). The issuer with the largest market capitalization on the Indonesia Stock Exchange (IDX) will split its stock value in a 1:5 ratio.

With this corporate action, the total number of BBCA shares will increase from 24.65 billion shares to 123.27 billion shares. Meanwhile, the par value of the shares will change from Rp 62.5 per share to Rp 12.5 per share.

In the disclosure of information on the IDX website, Friday (30/7), BBCA management said: stock split This aim is to increase the liquidity of BBCA’s stock trading on the Indonesia Stock Exchange and make BBCA’s share price more affordable for retail investors, including the demographic of young investors.

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“So it is hoped that it will increase the number of company shareholders,” said Raymon, Friday (30/7).

Sucor Securities Senior Analyst Edward Lowis said stock split this could boost BBCA’s stock performance going forward. With a lower price per share, BBCA shares will certainly be more affordable for individual investors.

“If you look at the average trading price for the last three months, the post- stock split ranging from Rp 6,000 to Rp 6,500,” explained Edward when contacted by Kontan.co.id, Friday (30/7).

In the same vein, Erdikha Elite Sekuritas analyst Ivan Kasulthan assessed that the corporate action carried out by banking issuers was quite interesting. The split in the number of BBCA shares at this time will certainly have an impact on stock liquidity.

Ivan said, if referring to today’s closing price (30/7) which is Rp 29,850 per share, it is estimated that BBCA’s shares could be relatively cheap to Rp 5,970 per share. “This price is more affordable than the previous price stock split of course, “explained Ivan.

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With BBCA’s share price declining by about 11.82% year-to-date (ytd), Ivan assesses stock split this could be a positive catalyst for BBCA stocks that retail investors can collect. Technically, for now BBCA’s stock is still moving sideways between ranges support IDR 29,700 dan resistance IDR 30,900.

On the other hand, the implementation of restrictions on community activities (PPKM) is considered to have an impact on BBCA’s prospects. Edward said that the current emergency PPKM was at risk of lowering asset quality. If the PPKM policy can be relaxed immediately, the impact on asset quality will not be too significant.