Lippo Cikarang's new shares

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)