(Bloomberg) — Shares of PT Barito Renewables Energy fell by the daily limit for a second day after FTSE Russell said the company would be excluded from its indexes.
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Shares fell 20% on Monday, bringing the two-day loss to almost 36%. The index compiler said last week that the Indonesian energy company will be removed from the figures on Tuesday after being added on Monday, citing “high shareholder concentration.”
FTSE’s unusual decision is the latest twist for the group, whose shares have been on a wild ride since going public late last year. The meter operator postponed adding the stock to its indexes in June after it was placed on the Indonesian stock exchange’s watchlist for volatile and troubled companies.
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Barito said in a filing late on Sunday that it had published its shareholder information to the exchange during its 2023 IPO. Four shareholders held about 96% of the shares as of September 19, compared to 97% stated in the company’s IPO prospectus . company said.
It also said as many as 11.7% of its shares met the free float requirement as of September 19, according to the statement, citing daily data from the Indonesia Central Securities Depository. “The company will continue to monitor compliance with the free float rules set by the exchange,” Barito said.
Barito was the biggest drag on the Indonesian stock benchmark, which fell as much as 0.9% before recovering.
Indonesia’s exposure to Barito and related companies “makes it difficult for the broader index to remain insulated from a sharp decline like this,” said Mohit Mirpuri, fund manager at Singapore-based SGMC Capital Pte.
(Updates with context from third paragraph. An earlier version has been corrected to clarify the details of share ownership and free float.)
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