PT Bank JTrust Indonesia Tbk plans to conduct a 1-for-100,000 reverse stock split and issue new common stock to lift the ratio of third-party investors, IDNFinancials reported June 29, citing company directors.
The par value for type A shares will be adjusted to 1,000 rupiah from 1 sen, while the par value for type B shares will be adjusted to 7.8 million rupiah from 78 rupiah.
Less than 1% of the Indonesian lender's shares are traded publicly, with JTrust Di Ltd., JTrust Investment and Gorup Lease Holding Pte. Ltd. holding stakes of 96.18%, 1% and 2.81%, respectively. Japan-based J Trust Co. Ltd. is the ultimate parent of the bank.
Following the reverse stock split, the bank will issue up to 1 billion post-reverse stock split type A shares, or 9.99% of the paid-up shares. It plans to introduce investors to take up shares so as to meet the Indonesian stock exchange's requirement for at least 7.5% of its stock to be held by the public or a third party, instead of the controlling shareholder.
The moves are expected to result in the bourse lifting its trading suspension on Bank JTrust Indonesia's shares. The lender can then return to trading on the stock market in 2019, said directors Helmi Hidayat and Felix Hartadi.
Hidayat added that the bank has held discussions with a number of strategic investors regarding the sale of new shares, without naming them.
As of June 29, US$1 was equivalent to 14,300 Indonesian rupiah.