Lippo Cikarang's IPO oversubscribed

JAKARTA (JP): PT Lippo Cikarang said Wednesday that its recent initial public offering (IPO) was a big success, with demand far exceeding available shares.

Lippo Group's deputy chairman, James T. Raidy, said the IPO was oversubscribed by 150 percent, forcing the company to make an allotment to subscribers.

Lippo Cikarang, a property subsidiary of widely diversified Lippo Group, is the developer of a 5,550-hectare self-contained city project in Cikarang, West Jakarta.

Riady said the company raised around Rp 100 billion (US$41 million) from the IPO to further expand the township project.

The company sold 108.58 million new shares during the IPO and was scheduled to list the shares on the Jakarta and Surabaya stock exchanges later this month.

Lippo Cikarang's chief executive officer, Eddy Sundoro, attributed the IPO success to the company's strong commitment in developing the self-contained city.

Company vice president, Susiloputro, said the 850-hectare industrial zone in Lippo Cikarang would further strengthen the township.

Some leading industries and companies also opened offices in Lippo Cikarang, which also has a 22,000-square-meter shopping mall, 143 shops and a four-star hotel.

Company profit was projected to increase to Rp 76 billion in its financial year which ended in June from Rp 71 billion in the previous year.

Lippo Cikarang has developed 1,060 hectares out of its 2,450 hectares of land. (icn)