Surabaya, January 10, 2024 – PT Avia Avian Tbk ("AVIA") is currently in the process of executing the Company's share buyback program. This process began in late December last year, after obtaining approval through an Extraordinary General Meeting of Shareholders ("EGMS") on December 7, 2023. Nearly two weeks after the share buyback program commenced, AVIA's market price increased by 14.2% to Rp500/share as of the closing on January 9.
The share buyback program will continue, and for this program, AVIA has allocated funds amounting to Rp1 Trillion. The maximum number of shares to be repurchased is 1.425 billion shares, or approximately 2.3% of the Company's issued and paid-up capital. Furthermore, the percentage of share buyback activities conducted by AVIA does not dominate AVIA's total stock market activities. Based on AVIA shareholder data as of January 9, 2024, AVIA has repurchased 104,241,800 shares, or approximately 7.3% of the maximum amount set by the Company.
Nevertheless, management still believes that AVIA's current price does not yet reflect its true value, performance, and fundamentals. This assumption is made considering AVIA's position as a leader in the decorative paint market, supported by a widespread distribution network across Indonesia. With a price level of approximately Rp500/share, AVIA's PER is still below 20X, which is lower compared to the average PER of similar industries in the Asian regional area, which ranges from 30X to 50X.
Through the share buyback program, management hopes to enhance confidence and provide a good rate of return to shareholders. Several weeks after the share buyback program was implemented, new institutional shareholders, both local and foreign, began purchasing AVIA shares. Additionally, many local retail or individual shareholders also participated with a relatively high level of involvement.
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About PT Avia Avian Tbk
PT Avia Avian Tbk. was established in 1978 as an integrated paint manufacturing company. It is known as Avian Brands. For over 4 decades, Avian Brands has colored the lives of millions of Indonesian families through a variety of products, including Sunguard All in One, Supersilk Anti-Stain, and Avitex wall paints, No Drop waterproof coating, and Avian wood & metal paints.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with stock code (IDX: AVIA), AVIA is the largest decorative paint manufacturer and a market leader in the decorative paint and coatings industry in Indonesia based on a survey conducted by Frost & Sullivan. Currently, AVIA controls approximately 23% of the market share in the decorative paint and coatings industry in Indonesia. AVIA has strong manufacturing capacity and capabilities through its manufacturing facilities in Sidoarjo and Serang, supported by vertical integration capabilities that allow AVIA to produce raw materials internally. AVIA also has the widest distribution network in Indonesia, which includes 116 self-owned distribution centers, 14 self-owned mini distribution centers, and 40 third-party distribution centers as of the end of September 2023. All these distribution centers serve more than 56,000 building material stores across Indonesia. Since 2020, Avian Brands has had the first research, development, and innovation center in Indonesia called Avian Innovation Center (AIC), covering an area of 5,000 square meters. As a testament to Avian Brands' commitment to environmental management, occupational health and safety, and GCG (Good Corporate Governance) in accordance with international standards, Avian Brands has successfully obtained and implemented ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health and Safety Management System), ISO 50001:2018 (Energy Management System), and 26000:2010 (Guidelines for GCG, social responsibility, social harassment, and gender equality). The presence of Avian Brands aims to provide leading benefits and contribute to coloring Indonesia.
