Shares of PT Barito Renewables Energy have taken a drastic hit, experiencing a 20% drop for the second consecutive day following news that FTSE Russell will be excluding the company from its indexes. This news has compounded losses for the company, with a total decline of nearly 36% since Thursday.
FTSE Russell cited “high shareholder concentration” as the reason for Barito’s exclusion from its gauges. Despite Barito claiming that there have been no significant changes to its shareholders’ stakes since its listing in October 2023, the index compiler has decided to remove the Indonesian power company from its indexes.
Barito, Indonesia’s second-largest company by market value, had disclosed its shareholding information, including that of its four stakeholders, during its initial public offering. However, FTSE’s decision to exclude the geothermal power producer from its Global All Cap Index series and associated gauges has caused a stir in the market.
The stock had seen a remarkable surge of over 1,400% since its IPO, reaching a record high earlier this month. This growth was not without its challenges, as the company experienced volatility and was added to a stock exchange watchlist for troubled companies earlier in the year.
Despite the recent setback, Barito remains optimistic about its future. The company stated that as of September 19, 11.7% of its shares met the free float requirement, according to data from the Indonesia Central Securities Depository. Barito emphasized that it will continue to monitor compliance with the free float rules set by the exchange.
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