Jakarta. Siloam International Hospitals, the largest listed hospital operator in Indonesia by the number of hospitals, has announced a plan for an eight-for-one stock split to encourage more individual investors to hold interest in the company, it said in a statement on Tuesday.
Siloam said that the company's shareholders approved the plan at the Extraordinary General Meeting of Shareholders (EGMS) electronically on March 22.
"This stock split aims to increase the company's stock trading liquidity on the Indonesia Stock Exchange (IDX)," Siloam wrote in the statement.
"Through this stock split, the company's share becomes more affordable for retail investors, so hopefully, it will increase the number of company shareholders."
After the split, the nominal value of the shares would be Rp 12.5 per share from Rp 100 currently. Each shareholder would receive eight new stocks for each share they now own.
The number of total shares would increase to 13 billion shares after the split from 1.63 billion shares today.
Siloam's share price rose 2.08 percent today to Rp 7,350 percent. Trading at the new prices is expected to begin in April 2022.
This stock split plan will be implemented by taking into account the applicable regulations and the provisions of the company's articles of association, Siloam said.