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- JAKARTA - PT Chandra Asri Pacific Tbk (TPIA), a conglomerate issuer, has announced a planned share buyback of up to 250 million shares, representing 0.29% of the company's...
- The company has allocated Rp 2 trillion for this corporate action.
- Shares of TPIA gained 2.84% to close at Rp 7,250 yesterday.
Table of Contents
JAKARTA – PT Chandra Asri Pacific Tbk (TPIA), a conglomerate issuer, has announced a planned share buyback of up to 250 million shares, representing 0.29% of the company’s total issued shares.
The company has allocated Rp 2 trillion for this corporate action. The buyback price is set at Rp 10,000 per share.
Shares of TPIA gained 2.84% to close at Rp 7,250 yesterday. Trading volume reached 67.47 million shares, with a frequency of 30,657 transactions and a total transaction value of Rp 496.33 billion.
According to a statement made on Friday, March 21, 2025, in an information disclosure to the IDX, TPIA stated:
The funds come from the company’s internal cash in stages, including the cost of transaction repurchasing shares, and the brokerage commission, and also other costs related to the purchase of shares.
A share buyback, also known as a stock repurchase, occurs when a company buys back its own outstanding shares of stock from the open market. This corporate action reduces the number of shares available, which can impact the remaining shares’ value.
Key Takeaway: A share buyback is the process where a company purchases its own shares.
While the specific reasons behind a share buyback can vary, common motivations include:
Increasing share Value: By reducing the number of outstanding shares, earnings per share (EPS) frequently enough increase, perhaps making the stock more attractive to investors.
Signaling Confidence: A buyback can signal to the market that the company believes its stock is undervalued adn has strong future prospects.
Announcement Date: March 21, 2025
Company: PT Chandra Asri Pacific Tbk (TPIA)
Shares to be Repurchased: Up to 250 million shares
Percentage of Total Shares: 0.29%
Allocated Funds: Rp 2 trillion
Buyback Price: rp 10,000 per share
Funding Source: Internal cash, in stages.This includes transaction costs, brokerage commissions, and other related expenses.
Impact on Stock Price (Prior to Announcement): Shares of TPIA gained 2.84% to close at Rp 7,250 on the day before the announcement.
Trading Volume: 67.47 million shares
Transaction Frequency: 30,657 transactions
Total Transaction value: rp 496.33 billion
When a company repurchases shares, it can have several effects on existing shareholders:
Increased Ownership: When a company buys back its shares, the ownership percentage of each remaining share increases, as there are fewer shares outstanding.
Potential for Higher earnings per Share (EPS): With fewer shares outstanding, the company’s earnings are divided among a smaller number of shares, which can result in higher EPS, potentially leading to an increased stock price.
Stock Price Increase: If the buyback is seen positively by the market, the stock price may increase.
Cash Flow: A importent buyback program can consume a large amount of cash, potentially reducing funds available for other investments or initiatives.
Impact on Investment: The allocation of funds for buybacks means that money is diverted from other potential investments, such as research and development or business expansion, that could also increase shareholder value.
Key Details Summary
| Feature | Details |
| :———————- | :————————————- |
| Company | PT Chandra Asri Pacific Tbk (TPIA) |
| Shares to be Repurchased | Up to 250 million |
| Percentage of Shares | 0.29% |
| Funds Allocated | Rp 2 trillion |
| Buyback Price | Rp 10,000 per share |
| Funding Source | Internal cash |
| TPIA Price (Pre-Announce) | Rp 7,250 |
| Trading Volume | 67.47 million shares |