ILUSTRASI. Integra Indocabinet (WOOD) initiates a corporate buyback of its shares, commencing on Thursday (9/3). ANTARA FOTO/Umarul Faruq/hp.
Reporter: Ridwan Nanda Mulyana | Editor: Hasbi Maulana
KONTAN.CO.ID -JAKARTA. On Thursday, March 9th, PT Integra Indocabinet Tbk (WOOD) began executing a corporate action of share buyback. The buyback of WOOD shares is limited to a maximum price of Rp 500 per share.
According to the disclosure of information on the Indonesia Stock Exchange (IDX) on Wednesday, March 9th, WOOD has allocated Rp 50 billion for buybacks to purchase a maximum of 100 million shares.
Wang Sutrisno, the Director of Integra Indocabinet, explained that the buyback funds are financed by internal cash, so WOOD does not require additional expenses. This corporate action also does not have any impact on revenue. In addition, WOOD has adequate working capital and reserve funds.
"The implementation of this share buyback plan will not have any impact on the company's revenue," Wang explained.
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Although the buyback will reduce the number of WOOD shares circulating in the market, it is estimated that this action will not have a significant impact on WOOD's earnings per share.
"The buyback will only reduce the number of shares in circulation, but will not have a significant impact on the company's earnings per share," Wang stated.
As planned, WOOD will conduct the share buyback over a period of up to three months, starting from March 9th, 2023 until June 9th, 2023. The buyback will be carried out through transactions on the IDX, using the services of a securities dealer intermediary. The fee for the transaction is approximately 0.11% of the transaction value.
Wang added that through the buyback, it is hoped that the price of WOOD shares can remain stable in the midst of fluctuating market conditions, as well as provide investors with confidence in the fundamental value of WOOD shares. According to Wang, the buyback of WOOD shares also provides flexibility in managing long-term capital.
"Treasury shares can be sold in the future at an optimal value if the company needs to increase its capital," Wang concluded.
At the close of trading on Friday, March 10th, WOOD shares were in the green zone. WOOD shares were at Rp 420, up 0.48% from the previous day's closing. This increase accumulates a 16.05% increase in WOOD shares since the beginning of 2023.