Trimegah Bangun Persada shares offered at IDR1,400 each: terms

Trimegah Bangun Persada shares offered at IDR1,400 each: terms

Trimegah Bangun Persada Announces Share Buyback Terms Amid Market Volatility

PT Trimegah Bangun Persada Tbk (NCKL), a nickel mining and processing company, has announced plans to increase its share buyback budget to IDR 1 trillion, up from an initial proposal of IDR 400 billion, to potentially enhance shareholder value. The initiative, pending approval at the Annual General Meeting of Shareholders (AGMS) on June 27, 2024, aims to capitalize on what management describes as a market price that "has yet to reflect the true value of the company". If approved, the buyback will be executed within 12 months, using internal cash reserves rather than IPO proceeds or loans.

The buyback will occur through both on-exchange transactions on the Indonesia Stock Exchange (IDX) and off-exchange purchases. PT Harita Kencana Sekuritas, a subsidiary of NCKL's parent company, has been appointed as the broker for the program. As of June 25, 2024, NCKL's stock closed at IDR 1,000 per share, down 1.48% from the previous session, according to IDNFinancials data.

The company, which operates nickel laterite mining projects on Obi Island and distributes products globally, has faced stock price fluctuations amid broader market dynamics. Earlier in 2024, the proposed IDR 400 billion buyback was framed as a response to undervaluation despite the company's "quite good performance," according to management statements.

Terms of the expanded buyback include no restrictions on the number of shares repurchased, with the budget allocated to acquire up to approximately 653,600 shares at the June 25 closing price of IDR 1,000. However, the actual price per share during the buyback period may vary based on market conditions. Investors should note that the stock symbol NCKL.JK has raised questions about potential delisting or exchange changes, though no official confirmation has been provided.

The decision underscores NCKL's strategy to optimize capital structure while balancing operational commitments, with management emphasizing that the buyback will not impact the company's ability to meet obligations.