AKR Corporindo Stock Split Approved at a 1:5 Ratio: What's the Share Price Now?

PT AKR Corporindo Tbk (AKRA) finally received approval for its corporate action of a stock split at an Extraordinary General Meeting of Shareholders (EGMS) held on Monday, December 20, 2021.

The EGMS sought shareholder approval for a stock split with a ratio of 1:5. With AKRA's current nominal value of Rp 100 per share, this will be split into Rp 20 per share. The plan is to record all shares on December 24, 2021, with the split becoming effective in January 2022.

According to Yahoo Finance data, AKRA shares closed at Rp 4,400 per share on Monday, December 20, 2021. This price represents a 2.33% increase compared to the previous closing price and a 44% increase compared to the end of 2020, when it stood at Rp 3,055 per share.

If the stock split is implemented at the current price, the share price of this oil fuel distributor will become Rp 880 per share. Although the share price will decrease after the nominal price change, AKRA shareholders will not be diluted because the number of their shares will increase fivefold.

The lower price after the stock split will make AKRA shares more liquid and accessible to investors, particularly retail investors.

With the current number of listed shares at 4,014,694,920, the stock split will increase this number to 20,073,474,600 shares.

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