Audit sought on Lippo plan

JAKARTA (JP): Publicly listed Lippo Life's rights issue plan should be audited by an independent public accountant to ensure that the limited public offering plan is needed, the Jakarta Stock Exchange (JSX) said on Friday.

JSX's management that the insurance company should submit the opinion of an independent auditor to confirm the rights issue was crucial.

The JSX will also require that Lippo Life set the nominal value and the exercise price (the price at which the rights share is sold) of each rights share at the same level of the market price of the insurance company's shares.

If the average market share for the last 25 trading days was about Rp 400, JSX said, the nominal value and the exercise rights of the rights shares would be of the equivalent value.

JSX regulations stipulate that companies can offer their rights shares above the nominal value as long as the price of their shares already traded in the market is higher than Rp 500. (udi)