Jakarta—PT Barito Renewables Energy Tbk (BREN) shares were excluded from the FTSE Russell Index because they were deemed not to meet the free float requirements. In a written statement from FTSE Russell on Thursday, September 19, Barito Renewables Energy was deemed not to meet the free float restriction rules or restrictions on the minimum limit of shares owned by public shareholders.
This is related to the High Shareholder Concentration rule and FTSE Russell’s Recalculation Policy and Guidelines. This rule is in place to avoid the high concentration of certain shareholders in stocks constituting the FTSE index.
FTSE noticed that four shareholders controlled 97% of the total issued shares. Therefore, BREN was excluded from the FTSE Russell Index effective Wednesday, September 25, next week.
Previously, BREN was planned to be included in the FTSE Global Equity Series (Large Cap) index, which would be valid from September 20, 2024, and effective September 23, 2024.
This is the second time the issuer made by tycoon Prajogo Pangestu has been prevented from entering FTSE after being tripped up last June because BREN was included in the Special Monitoring Board (PPK) on the Indonesia Stock Exchange (IDX), which uses a full call auction (FCA) scheme that is considered to reduce transparency and liquidity.
After the news that this renewable energy issuer’s shares were excluded from the FTSE Russell Index, BREN shares in today’s trading immediately fell sharply, weighing on the movement of the Indonesia Composite Index (IDX Composite).
Since opening, BREN shares immediately weakened and touched the lower auto reject limit (ARB) or fell 19.95%. The weakening of BREN shares also impacted the IDX Composite, which dominantly moved in the red zone and ended trading with a weakening of 2.05% to 7,743. (hs)
