PT Graha Layar Prima Tbk (BLTZ), the owner of Blitz Megaplex cinema network, has never experienced a penny of profit since its IPO in October 2014. Surprisingly, the share price of BLTZ continues to rise from Rp3,000 to Rp6.000 on its IPO.
The rising stocks of BLTZ are not accompanied by sufficient liquidity. There were only 8 brokers who trade when the price rose from Rp4,500 to Rp6,000 during 2016. Brokers with the largest volume are BNI Securities and Merrill Lynch.
The lack of liquidity is due to the high price of BLTZ and to the lack of the number of shares outstanding in the market. The number of BLTZ shares as of the moment is only as much as 337.66 million, and the majority of which is held by parties in the top 5%. The public only has 22% or 74.41 million shares and this causes difficulty in increasing liquidity. In addition, the share price to book value of equity ratio of BLTZ is already quite high at 4.3 times with the price of Rp6,000.
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