Palm oil producer PT PP London Sumatra Indonesia Tbk (Lonsum) has been approved by its shareholders to hold a 1:5 stock split during an extraordinary of shareholder's general meeting in last Friday. This corporate action is intended to boost the stock liquidity.
"The ratio is 1:5. Lonsum's stocks price will be adjusted following such corporate action," said Lonsum's President Director Benny Tjoeng yesterday.
If Lonsum's market price is around Rp11,000 per share, the stock's price will be traded at Rp2,200 per share after the split. The company's nominal stock will be divided from Rp500 to Rp100 per share, changing its total capital paid in to 6.82 billion shares.
Disclosure: No position at the stock mentioned above.
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