Jakarta. Shareholders approved on Wednesday a plan for a stock split by hospital operator Mitra Keluarga Karyasehat in a bid to boost liquidity.
The 10:1 split will reduce the nominal value of the shares from Rp 100 per share to Rp 10. Shareholders also agreed to boosted the paid-up capital and the number of shares issued by tenfold, to 14.55 billion shares from 1.45 billion.
“We believe that by undertaking stock split, it will result in an increased number of shares issued and MIKA’s shares will be more affordable," Rustiyan Oen, the company's president director, said in a statement.
"Consequently, we hope that it will increase the stock liquidity."
The company listed its shares on the Indonesian Stock Exchange (IDX) on March 24 this year at an initial price of Rp 17,000 per share.
Shares closed at Rp 29,225 on Wednesday, unchanged from the previous day.
Mitra Keluarga started operating its first hospital in 1989 and currently owns and operates 12 hospitals: eight in the Greater Jakarta area, three in Surabaya, and one in Tegal, Central Java.