The world’s most volatile major stock fell 36% on the FTSE Eject

(Bloomberg) — Shares of PT Barito Renewables Energy fell below their daily limit for the second day after FTSE Russell said it would drop the company from its indices.

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Shares fell 20 percent, bringing Thursday’s losses to nearly 36 percent. The index compiler said the Indonesian power company would be delisted from its instruments a day after its anticipated entry date, citing “high shareholder concentration”.

Barito, in a statement late Sunday, said there have been no significant changes in its shareholders’ holdings since its listing in October 2023. Indonesia’s second-largest company by market value released its shareholding information, including on the four interested parties, on the stock market during the initial public offering, he said. The four shareholders owned about 96 percent of the stock as of Sept. 19, compared with the 97 percent listed in the company’s IPO prospectus.

FTSE had planned to add the geothermal power producer to its Global All Cap Index series and related instruments on Monday. The shares will be delisted from Tuesday, according to the FTSE statement last week.

Barito has risen more than 1,400% since its IPO to an all-time high earlier this month. The stock has had a wild ride earlier this year after being added to the stock exchange’s watch list for volatile and troubled companies.

Up to 11.7 percent of its shares met the free float requirement as of Sept. 19, according to the statement, which cited daily data from Indonesia’s Central Securities Depository. “The company will continue to monitor compliance with the free float rules set by the stock exchange,” Barito said.

(Correct to clarify details of shareholding and free float in third and sixth paragraphs respectively)

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