Lippo Cikarang's new shares

JAKARTA (JP): Urban developing company PT Lippo Cikarang will offer 108.5 million new shares or 15.6 percent of its enlarged capital to the public later this month.

The company's chief executive officer, Eddy Sundoro, said yesterday that the shares, each with a par value of Rp 500, would be sold at between Rp 925 and Rp 1,050 (43 U.S. cents) during the offering period from June 25 to June 27.

The company's shares will be listed on the Jakarta and Surabaya stock exchanges on July 26.

Eddy said the company, one of the property arms of the widely diversified Lippo Group, expected to raise between Rp 100.4 billion and Rp 114 billion ($45.6 million) from the initial public offering (IPO).

"Twenty-five percent of the IPO proceeds will be used to purchase and clear land in Cikarang, West Java, 35 percent to develop infrastructure and public facilities and 40 percent to repay debt," Eddy said.

PT Lippo Securities will be the lead underwriter of the company's IPO.

Eddy said PT Lippo Cikarang, which started its Lippo Cikarang project in 1991, had developed 1,060 hectares from its 2,450 hectares of land. It had sold about 5,500 houses by last December.

The self-contained city project, which will occupy about 5,550 hectares, involves Lippo Group, pharmaceutical company Kalbe Group and Yayasan Trisakti.

Eddy said the company's profit was projected to increase to Rp 76 billion in its financial year ended in June from Rp 71 billion in the same period of 1996.

The company had total assets worth Rp 716 billion as of June, last year, up from Rp 574 billion in the same period of 1995.

At present, Lippo Cikarang is 50 percent controlled by PT Kemuning Setiatama, 18.47 percent by PT Glassanto. Other shareholders, individuals and institutions own between 1 percent and 7.5 percent.

After the IPO, the company's paid-up capital will increase to Rp 348 billion from Rp 293 billion at present. (13)