Currently retail investors need more than the minimum wage in Jakarta to start buying Unilever Indonesia stocks. (JG Photo/Dion Bisara)
Unilever Indonesia Proposes Stock Split, Director Change
SEPTEMBER 30, 2019
Jakarta. Unilever Indonesia, a listed consumer goods giant, plans to split its stocks in order to make them more affordable for individual investors, the company said in a statement on Monday.
"The company considers the price of the [Unilever Indonesia] stocks quite high.... We hope with this stock split it will become more affordable for most retail investors," Sancoyo Antarikso, Unilever Indonesia's director and corporate secretary, said in a statement.
The blue-chip stock was at the pricier, higher end of the range at the Indonesia Stock Exchange (IDX), and still has a lot size – the minimum number of shares that can be traded in a transaction – of 100.
Individual investors who want to buy Unilever stocks, which closed at around Rp 47,000 ($3.32) a piece last week, need to set aside at least Rp 4.7 million to start trading. That amount is more than the minimum wage in Jakarta.
"In addition, the stock split is also expected to support growth at the IDX since it will increase Unilever's stock trading liquidity," Sancoyo said.
The company will submit a proposal for changes in the nominal value of its stocks in an extraordinary general meeting of shareholders. The time for the meeting has not been decided, Sancoyo said.
The meeting is also set to approve changes in the company's board of directors. Unilever plans to replace Amparo Cheung Aswin, whose resignation will come into effect on Tuesday, with Rizki Raksanugraha.
Rizky was previously Danone Indonesia's director of operations. Rizky has more than 27 years of experience in the supply chain field in Indonesia and other countries including China, Thailand and several countries in the Middle East and Europe.