Asuransi Lippo offers shares

JAKARTA (JP): PT Asuransi Lippo (Lippo General Insurance) of the widely diversified Lippo Group made a successful capital market debut when it floated its shares on the Jakarta Stock Exchange yesterday.

The demand for the company shares was high and the company's share price booked a gain of Rp 525 to Rp 2,750 in the morning session, dealers said.

The company's share trading was so intense that 20 million shares or 40 percent of the total number of shares offered changed hand during the first session, they said.

The price of the company's shares rose Rp 475 higher in the afternoon session to close at Rp 2,700, with 26.23 million shares changing hand in the regular market.

The company's initial public offering (IPO), which was launched earlier this month, attracted local and foreign investors.

Some analysts predicted that investors' high enthusiasm would continue in the coming months given the positive sentiment during the IPO.

A senior analyst of Vickers Ballas in Singapore, Fu Ya Yin said Asuransi Lippo shares attracted investors because the company had a promising future.

Its access to distribution channels of the Lippo Group which is known for its aggressiveness and innovation would allow the insurance company to benefit the country's growing insurance industry, she said.

Chief Executive Officer of Lippo Group James T. Riady said foreign investors had responded positively to the listing of Asuransi Lippo.

"We have a strong commitment to develop Asuransi Lippo further to become the leader in the commercial retail and health care sectors in Indonesia," he said. (aly)