JAKARTA (TheInsiderStories) – Private equity firm, PT Saratoga Investama Sedaya Tbk (IDX: SRTG) will conduct a stock split with a ratio of 1:5 and buyback 25 million shares or 0.92 percent of issued and paid up capital, the management announced on Tuesday (04/06). The issuer prepared funds Rp150 billion (US$10.34 million) to run the buyback program starting second quarter of 2021 to June 30, 2022.
“(We) considers that the current share price does not reflect the actual value of the company. The company plans to keep the shares that have been bought back as treasury shares not more than three years,” wrote the management in an official statement.
In 2020, Saratoga posted a net asset value (NAV) of Rp35 trillion, rose 53.17 percent compared to the end of 2019 which was valued at Rp22.85 trillion. The increase was triggered by the strengthening of the stock prices of its portfolios, including PT Merdeka Copper Gold Tbk (IDX: MDKA) and PT Tower Bersama Infrastructure Tbk (IDX: TBIG).
According to Devin Wirawan, the investment director of the company, said the increase in NAV was in line with the portfolio diversification strategy. Apart from Merdeka Copper and Tower Bersama, the other portfolios are PT Adaro Energy Tbk (IDX: ADRO) and PT Mitra Pinasthika Mustika Tbk (IDX: MPMX).
In the future, he continued, his party targets the contribution of investee shares from the consumer goods, health, and logistics, continue to increase. As an investment company, he claimed, the company also enjoys dividends from its portfolios. In the last four years, the company has consistently received dividend income more than Rp800 billion.
Apart from companies listed on the Indonesia Stock Exchange, Saratoga also expand their investment to startup technology companies through Skystar Capital and Provident Growth Fund. Skystar has invested in more than 30 companies and te Provident Growth Fund have been involved in a number of startups with a valuation above $1 billion such as Traveloka, Gojek, and JD.ID.
In 2020, Saratoga recorded a net profit of Rp8.82 trillion, rose 20 percent from the same period the previous year. This profit growth was supported by an increase in the value of investment portfolio, which increased by 39 percent to Rp31.7 trillion by the end of 2020.
President director of the investment fund company, Michael Soeryadjaya, stated that the performance of the investment was the key to the achievement. Founded in 1998, the investment managers has plays an active role in managing investee companies and exploring investment opportunities in Indonesia.
Saratoga focuses on investment opportunities in the early stages and growth, and in special conditions with a focus on sectors that support economic growth in Indonesia such as consumers, infrastructure, and natural resources.
The company vision is to continue to be a leading active investment company and become the partner of choice for local and foreign investors looking to participate in the dynamics of Indonesia’s economic growth.
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