(Bloomberg) -- PT Barito Renewables Energy tumbled by its daily limit after FTSE Russell said it would delete the Indonesian power giant from its indexes a day after the anticipated entry date.
The decision comes after the index compiler cited “high shareholder concentration” for the $78 billion geothermal power company, adding that four shareholders control 97% of total equity issued. Shares sank by 20%.
The saga is the latest twist for Indonesia’s biggest company by market value, whose shares went on a wild ride earlier this year following its addition to a stock exchange watchlist for volatile and troubled companies. The swings spurred FTSE Russell to delay the company’s inclusion into its large cap index.
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The Indonesian geothermal power producer was slated to be added to the FTSE Global All Cap Index series and associated gauges when trading starts on Monday. The stock will be deleted starting Tuesday, according to a FTSE statement.
Barito Renewables only has one company analyst rating, according to Bloomberg-compiled data. The firm is majority-owned by PT Barito Pacific, which is majority-owned by billionaire Prajogo Pangestu.
Barito Pacific shares fell by as much as 11%. Indonesia’s stock benchmark was down as much as 2.1%, with both companies among the biggest drags.
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