Irvin Avriano A.
Sierad Produce reverse stock 10 times
JAKARTA: Animal feed and broiler producer which listed in the bourse, PT Sierad Produce Tbk, plans to merge the shares' value (reverse stock) with a ratio of 10 times in the near future.
This was revealed in the agenda of extraordinary general meeting of shareholders (EGM) of the company that will be held on March 11th.
In a statement to the Indonesia Stock Exchange (IDX/Bursa Efek Indonesia) yesterday, Sierad Corporate Secretary Elies Lestari said the reverse stock would change the A series par value from IDR395 to IDR3,950, B series from IDR395 to IDR3,950, and C series from IDR100 becomes IDR1,000.
Nominal price the company's shares had reversed in 2004 with the same ratio. The SIPD-coded company also had converted the convertible bonds and long-term debt by issuing shares of C series in 2005. In late 2009, the company conducted a quasi reorganization and reduction in share value for series A and B, from previously IDR5,000 and IDR3,000 become IDR395.
She also told shareholders whose entitled to attend the EGM is who had their stock on February 23th.
When confirmed, Elies not yet allowed to provide information because it must wait for next week disclosure. She said the company also has not yet intention to hold a rights issue after the reverse stock. "[Rights issue plan] not yet decided," he said via short message service yesterday.
Often, issuers of low stock prices reverse stock before finally doing a rights issue to boost its stock price in the market to a level that was common at the level of IDR100.
Currently, the company stock price at the level of IDR62, still lower than the common. Prices were stagnant on the movement of stocks yesterday, and establish its market capitalization amounted to IDR582.25 billion.
The agenda also showed that the company's plan to change its directors.