Lippo Life to split stocks to improve liquidity<\/p>\n
JAKARTA (JP): Lippo Life Insurance, a publicly listed life
\ninsurance company of the Lippo Group, will split its shares to
\nimprove their liquidity.<\/p>\n
The company announced here over the weekend that the stock
\nsplit -- to be effective on April 19 -- will cut the nominal
\nprice of shares to Rp 500 (22 U.S. cents) each from Rp 1,000 at
\npresent.<\/p>\n
The company also plans to distribute a bonus share for every
\none existing share. As a result, Lippo Life shareholders owning
\none share will end up owning four shares.<\/p>\n
By the stock split, the company's shares on the market will
\nincrease by 400 percent from 48 million to 192 million shares.<\/p>\n
In addition to the split, the company also announced a program
\nto promote a new share ownership plan with the aim to promote
\nwider Lippo Life shares ownership.<\/p>\n
The program, it added, would be promoted among the 1.8 million
\ncustomers of the Lippo Life Insurance and Lippobank.<\/p>\n
Lippo Life Insurance, which is listed on the Jakarta Stock
\nExchange, has a market capitalization of over Rp 500 billion.<\/p>\n
Through 121 sales offices throughout the country, Lippo Life
\nclaims to control 18 percent of the local insurance market,
\nboasting an annual revenue of over Rp 450 billion.<\/p>\n
\"We're extremely pleased with the performance of Lippo Life,\"
\nsaid Lippo Life's president, Billy Sindoro, adding that this year
\nhis company was aiming for a net profit of Rp 29.4 billion.<\/p>\n
He noted that his company's revenue growth has averaged more
\nthan 50 percent per annum over the last 10 years. In the last two
\nyears alone, growth averaged 300 percent per annum.<\/p>\n
\"We anticipate strong growth over the next decade in line with
\nIndonesia's healthy economic growth and growing middle income
\ngroup,\" he said.<\/p>\n
Lippo Life quoted Director of Insurance at the Ministry of
\nFinance Sophar L. Toruan as noting recently that the Indonesian
\nlife insurance industry has grown rapidly and will play a big
\nrole in Indonesia's economic development.(13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lippo-life-to-split-stocks-to-improve-liquidity-1447893297",
"image": ""
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