Lippo Karawaci going public after delay<\/p>\n
JAKARTA (JP): PT Lippo Karawaci, a township developer in
\nTangerang, West Java, is finally to sell 30.8 million new shares
\nor around 8 percent of its enlarged stocks to the public early
\nnext month after a year of delay.<\/p>\n
Lippo Karawaci's president, Eddy Sindoro, said yesterday the
\ncompany expected to raise around Rp 170 billion (US$76.5 million)
\nin fresh funds from the public offering.<\/p>\n
Eddy was optimistic that the public offering would receive a
\npositive response from both local and foreign investors, despite
\nthe delay.<\/p>\n
\"The plan to go public was delayed only due to unfavorable
\nmarket conditions. We hope this time things are more promising,\"
\nhe told securities analysts at a presentation of the company's
\ninitial offering.<\/p>\n
The Lippo Group has been reported to be suffering financial
\ndifficulties with Lippo Land, the group's property arm which owns
\nLippo Karawaci, and Lippo Cikarang, a township development in
\nCikarang, West Java.<\/p>\n
The financial problems were allegedly the result of poor
\nmarketing of the two townships. But this allegation was flatly
\ndenied by the business group.<\/p>\n
Yesterday, the organizer of the presentation meeting allowed
\nonly a couple of journalists to attend the meeting, saying that
\nthe auditorium was already full. The organizer promised to
\narrange a press conference for the journalists in the afternoon
\nbut it was later cancelled for no clear reason.<\/p>\n
Eddy said that a number of high-rise buildings, luxury
\nhousings, hotels, a modern shopping complex, a golf course, a
\nworld-class hospital and an educational center meeting
\ninternational standards had been built in the 500-hectare
\nintegrated township in Karawaci.<\/p>\n
\"Big domestic and foreign retailers such as SuperMall, Wal-
\nMart, and JC Penney have stores in the township's business
\ncenter,\" he added.<\/p>\n
Eddy said that sales were very encouraging, with over 3,000
\nluxury houses having been sold since the launching of the project
\nin April 1993.<\/p>\n
\"Bank Lippo and a number of companies under the Lippo Group
\nhave relocated their headquarters to Karawaci,\" he said, adding
\nthat the country's giant retailer Matahari and a number of other
\nlocal business groups, including Dynaplast and Anwar Sierad, were
\nalso constructing offices there, around 30 minutes from the
\nTomang overpass in West Jakarta.<\/p>\n
Eddy said that Lippo Karawaci, which will be the seventh
\nmember of the Lippo Group to be listed on the Jakarta and
\nSurabaya stock exchanges, booked sales revenues of Rp 227.9
\nbillion ($126.31 million) for the financial year ending in June
\n1995. The sales revenues were Rp 137.5 billion the year before.<\/p>\n
After-tax profits rose to Rp 70.6 billion in 1994\/95 from Rp
\n22.2 billion in the same period, he said, adding that sales
\nturnover and net profits for the current financial year were
\nprojected to reach Rp 470.9 billion and Rp 100.5 billion
\nrespectively.<\/p>\n
He said that 40 percent of the proceeds raised from the sales
\nof the shares to the public would be used to construct
\ninfrastructure and public utilities, 20 percent would go on land
\nclearance and the remaining 20 percent would help to strengthen
\nthe company's capital. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lippo-karawaci-going-public-after-delay-1447893297",
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