PT Bank Central Asia Tbk. (BBCA), Indonesia's largest private bank, has seen its stock price soar, reaching Rp10,025 per share on February 20, 2024. Despite this milestone, the bank currently has no plans for a stock split or share subdivision.
Jahja Setiaatmadja, President Director of BCA, emphasized that the current share price remains affordable for retail investors. He highlighted the importance of market liquidity, stating that while low prices may be attractive, lack of liquidity can pose challenges. Setiaatmadja explained that maintaining liquidity is crucial, especially considering the exchange rate, with Rp10,000 equating to less than 1 US dollar.
He stressed the need to balance prices for both retail and foreign investors, with the current share price level of 10,000 being accessible for retail investors while still significant enough for foreign investors.
Reflecting on BCA's history, Setiaatmadja noted that the bank has undergone four stock splits, with three instances featuring a 1:2 ratio in 2001, 2004, and 2008. Additionally, in 2021, BBCA underwent a stock split with a 1:5 ratio when the share price was around Rp30,000.
Despite past stock splits, Setiaatmadja indicated that there are no immediate plans for another split, emphasizing the current balance in pricing that accommodates both retail and foreign investors.
The decision to maintain the share price without splitting reflects BBCA's strategic approach to market dynamics and investor preferences. As one of Indonesia's leading banks, BBCA continues to navigate market trends while prioritizing accessibility and liquidity for investors.