Jakarta – The Indonesia Stock Exchange (IDX) has responded to Barito Pacific Group Chairman Prajogo Pangestu’s move, which recently increased his share ownership in PT Barito Renewables Energy Tbk (BREN). IDX Director of Corporate Valuation I Gede Nyoman Yetna, said the purchase of shares by shareholders resulted in a significant decrease in the number of shares traded in the market or free float.
Even so, Nyoman added that share buyers have the right to buy back their company’s shares. “If purchased, it will reduce (free float). There will be a process for them to sell,” said Nyoman at the IDX Building on Tuesday, October 8.
However, Barito Renewables Energy was previously thrown out of the FTSE Russell Index because it was deemed not to meet the free float requirements. In a written statement from FTSE Russell in September 2024, BREN was deemed not to meet the restriction on the minimum limit of shares owned by public shareholders.
After the announcement, Prajogo Pangestu, the controlling shareholder of BREN, increased his share ownership by 26,611,600 shares on October 2 and 3, 2024.
In detail, on October 2, 2024, the average purchase price of 16,712,500 BREN shares reached IDR 6,776 per share. The next day, the average purchase price of 9,899,100 BREN shares was Rp 6,845 per share.
Prajogo Pangestu’s manoeuvres to accumulate shares of PT Barito Renewables Energy Tbk (BREN) have not been able to restore the performance of BREN shares, which were under pressure after being expelled from the FTSE Russell Index.
Throughout the last two weeks of trading, BREN has also faced selling pressure from foreign investors. From September 23 to 27, 2024, BREN recorded a net foreign sell of IDR1.1 trillion. Furthermore, in the period September 30 to October 4, 2024, BREN shares were recorded to be released by foreign investors amounting to IDR 90.1 billion or ranked 6th in the stocks that posted the most net foreign sells.
On Tuesday, October 8, BREN shares closed in the red zone again and ended at 6,700, or 0.74% lower, even though they had reached their highest level of 6,900. (hs)
