Shares of PT Barito Renewables Energy have plunged by the daily limit for the second consecutive day following FTSE Russell’s announcement that it will exclude the company from its indexes. The stock dropped 20% on Monday, bringing total losses to nearly 36% since the announcement made last Thursday.
FTSE Russell cited “high shareholder concentration” as the reason for Barito’s exclusion, which was supposed to take effect the day after its anticipated entry into the Global All Cap Index series. In a statement, Barito confirmed that there had been no significant changes to its shareholders’ stakes since its October 2023 IPO. As of September 19, the four major stakeholders collectively held about 96% of the company, a slight decrease from the 97% disclosed in the IPO prospectus.
Despite plans to add Barito to the FTSE indexes, the stock will now be deleted starting Tuesday. Following its IPO, Barito’s shares skyrocketed by more than 1,400%, reaching record highs earlier this month, but have faced volatility since being placed on a watchlist for troubled companies.
As of September 19, only 11.7% of Barito’s shares met the free float requirement, according to data from the Indonesia Central Securities Depository. The company stated it will continue to monitor compliance with the exchange’s free float regulations.
hii Aditi Sahu this side..
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