Indocement (INTP) Cancels Treasury Shares and Reduces Capital, Here's Why

PT Indocement Tunggal Prakarsa Tbk (INTP) plans to reduce its issued and paid-up capital through the withdrawal of shares resulting from a buyback, which are currently recorded as treasury shares. Citing a disclosure from the Indonesia Stock Exchange (BEI), this step forms part of the company’s strategy to respond to significantly fluctuating market conditions. Additionally, this corporate action aims to maintain the stability of share trading and enhance investor confidence amid market volatility. “The company plans to reduce capital through the withdrawal of shares from the share buyback currently recorded as treasury shares as an effort to maintain the stability of share trading in the capital market under high volatility conditions and to increase investor confidence,” BEI management stated on Wednesday (15/3/2026). It is mentioned that the number of treasury shares to be withdrawn amounts to 84,529,400 shares. These shares originate from buyback actions conducted in 2021 and 2022. Management assures that this capital reduction action will not have any specific impact on business activities or future growth prospects. Based on performance, the basic earnings per share (EPS) is recorded at Rp685 per share, both before and after the share withdrawal, assuming the weighted average number of shares outstanding reaches 3.28 billion shares. Currently, INTP’s share ownership structure consists of Heidelberg Materials AG at 53.40%, the public at 40.00%, and treasury shares at 6.60%. The company’s authorised capital is recorded at Rp4 trillion, equivalent to 8 billion shares, with paid-up capital at Rp1.76 trillion, equivalent to 3.51 billion shares. To facilitate this corporate action, the company will seek shareholder approval through an Extraordinary General Meeting of Shareholders (EGMS), with the EGMS call scheduled for 29 April 2026 and the meeting itself on 21 May 2026. Subsequently, the announcement of the capital reduction results is planned no later than 22 May 2026.