Barito Renewables Says No Significant Change to Shareholding

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(Bloomberg) — PT Barito Renewables Energy said there has been no significant changes to major shareholders’ stakes since its October 2023 listing, commenting after FTSE Russell cited a concentration in holdings as a reason for its index removal.

The company had published its shareholding information, including that of its four largest stakeholders, to the bourse during its initial public offering, the Indonesian company said in a statement on late Sunday. The four majority shareholders held around 96% of stake as of Sept. 19, compared with 97% stated in the company’s IPO prospectus. 

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The explanation came after FTSE Russell’s announcement that the Indonesian group will be deleted from its indexes a day after the anticipated entry date spurred a 20% plunge in the stock on Friday. The index compiler cited “high shareholder concentration” for the $78 billion geothermal power company.  

As much as 11.7% of its shares were owned by the public as of Sept. 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 determined by the exchange,” Barito said. 

The geothermal power producer was slated to be added to the FTSE Global All Cap Index series and associated gauges when trading starts on Monday. The stock will be deleted starting Tuesday, according to the FTSE statement. 

Barito surged more than 1,400% since its IPO to a record high reached earlier this month. The shares went on a wild ride earlier this year following its addition to a stock exchange watchlist for volatile and troubled companies.   

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