At the extraordinary general meeting (EGM) shareholders of Bank Mandiri on Monday (21/08) the proposed 1:2 stock split was approved. The stock split will come into effect per September 2017. Bank Mandiri, state-controlled yet listed on the Indonesia Stock Exchange, is one of the largest banks in Indonesia as well as one of the top ten largest companies in terms of market capitalization on the Indonesia Stock Exchange.
The stock split is expected to lead to rising appetite for shares of Bank Mandiri as its stocks become more affordable and liquid for retail investors.
Kartika Wirjoatmodjo, President Director of Bank Mandiri, said about 80 percent of the bank's floating shares are controlled by foreign fund managers. A cheaper share price could attract more domestic retail investors.
After the first trading session on Tuesday (22/08) shares of Bank Mandiri were up 0.57 percent to IDR 13,275 a piece (after rising 0.76 percent on the preceding trading day). So far this year, shares of Bank Mandiri have climbed 14.69 percent.
Stock Quote Bank Mandiri - BMRI:
Meanwhile, it was also decided at the extraordinary general meeting to appoint Hartadi A. Sarwono, R. Widyopramono and Darmawan Junaidi as Bank Mandiri's new president commissioner, commissioner and treasury director, respectively.