JAKARTA — PT Multipolar Technology Tbk. implemented a 25-for-1 stock split on July 21, 2026, substantially increasing the number of MLPT shares in circulation while reducing the price and par value of each share.

Under the transaction, every existing MLPT share was divided into 25 new shares. The Indonesia Stock Exchange adjusted the security’s parameters in its Jakarta Automated Trading System and set Rp1,040 as the theoretical reference price for regular- and negotiated-market trading.

How the Reference Price Was Calculated

MLPT finished the final cum-split trading session on July 20 at Rp25,950 under the old Rp100 par value.

Dividing that closing price by the 25-for-1 split ratio produced a mathematical theoretical price of Rp1,038:

Rp25,950 ÷ 25 = Rp1,038

The exchange then adjusted the result to the applicable trading-price increment. The reference entered into JATS was therefore rounded to Rp1,040.

The large numerical decline from Rp25,950 to approximately Rp1,040 should not be treated as an investment loss. Each shareholder simultaneously received 25 times as many shares.

An investor holding 100 shares before the corporate action would hold 2,500 shares afterward. Immediately after the proportional adjustment, the theoretical economic value of the position would remain broadly unchanged, excluding subsequent market movements.

Outstanding Shares Rise to 46.875 Billion

MLPT’s par value declined from Rp100 to Rp4 per share.

The number of issued and fully paid shares increased from 1.875 billion to 46.875 billion. The transaction therefore created an additional 45 billion share units without increasing the company’s total paid-up capital.

A shareholder’s percentage ownership remains unchanged because both the individual position and the company’s total share count are multiplied by the same factor.

Index Parameters Were Adjusted Separately

The exchange also recalculated MLPT’s base price for its individual share-price index.

The formula used was:

Rp1,040 ÷ Rp25,950 × 480 = 19.237

The resulting 19.237 base figure prevents the stock split from creating an artificial movement in the individual index merely because the number and nominal price of the shares changed.

The theoretical price, share count and JATS parameters took effect on July 21. Shares held through Indonesia’s central securities depository were scheduled for distribution to investor subaccounts on July 23, based on shareholder balances recorded on July 22.

The Retail-Accessibility Argument

Multipolar Technology said the split was intended to improve trading liquidity and make its shares more accessible to retail investors.

Before the adjustment, purchasing one standard lot of 100 MLPT shares required several million rupiah. Reducing the nominal market price to roughly Rp1,000 significantly lowers the minimum cash amount required to buy one lot.

The company first published its stock-split plan on May 21 and released implementation information on July 15.

A lower unit price may attract more market participants, broaden ownership and increase transaction frequency. It can also reduce the bid-ask spread when additional buyers and sellers enter the order book.

These outcomes are not guaranteed. Liquidity also depends on the public float, investor interest, company fundamentals, market conditions and the willingness of existing shareholders to trade.

What the Split Does Not Change

The corporate action does not directly increase Multipolar Technology’s revenue, profit, cash flow, assets or business prospects.

Per-share financial measures will be recalculated to reflect the larger number of shares. Earnings per share, for example, would be divided across 25 times as many units if all other factors remained unchanged.

A lower nominal price should therefore not be confused with a lower company valuation. Immediately after the adjustment, the theoretical market capitalisation remains the same because the lower price is offset by the greater number of shares.

Future valuation will continue to depend on the company’s financial performance, growth prospects, competitive position and the return investors require for holding the stock.

Potential Benefits and Risks

The split may encourage retail participation and make order-book activity more efficient. A wider shareholder base could also improve daily liquidity and reduce the difficulty of entering or exiting smaller positions.

However, a more affordable unit price may attract short-term speculative trading. Higher transaction volume can therefore coexist with greater price volatility.

Investors assessing MLPT after the split should focus on its operating results, margins, cash generation, information-technology industry outlook and valuation rather than relying only on the new nominal price.

The 25-for-1 transaction has changed the form in which MLPT ownership is divided. Whether it creates lasting market benefits will depend on subsequent trading liquidity, shareholder distribution and the company’s ability to deliver business growth.

Disclaimer: This article is intended solely for informational and educational purposes. It does not constitute investment advice, an offer, a recommendation or an invitation to buy or sell MLPT shares or any other security.