PT Medikaloka Hermina Tbk (HEAL) plans to buy back the company's shares worth Rp80 billion.

Director of Medikaloka Hermina, Aristo Setiawidjaja said, the repurchase of the company's shares will be carried out starting from February 26 to May 25, 2021. The costs arising from share buybacks are fees for services for buying shares on the IDX through a securities brokerage company, which is 0.25 percent of the transaction value.

"The estimated nominal value of shares to be bought back is a maximum of Rp80 billion with a maximum number of shares of 19 million shares," Aristo said, Tuesday (2/3).

The company, according to Arsito, has sufficient working capital and cash flow to carry out the share repurchase plan, so that the company directors believe that the implementation of this share buyback will not have a significant effect on the company's revenue.

"The company also limits the share buyback price to a maximum of Rp4,800 per share. "The share repurchase plan does not have an impact on the Company's income, but with the change in the number of shares outstanding, the share buyback plan will not have a significant impact on the Company's earnings per share," he explained.

Furthermore, share repurchases can stabilize prices in volatile market conditions. The buyback of the company's shares also provides flexibility for the company in managing long-term capital.

"Where treasury shares can be sold in the future with optimal value if the Company requires additional capital," said Arsito.