Lippo Insurance to float shares

JAKARTA (JP): PT Lippo General Insurance will float 51 million shares or 34 percent of its enlarged capital, the company announced yesterday.

The company's president director, M.F. Tumbelaka, said the float would increase the company's paid-up capital to Rp 75 billion (US$31.2 million) from Rp 49.5 billion. The number of shares in the company will increase from 99 million to 150 million.

The listing will boost equity to about Rp 200 billion, making Lippo General Insurance Indonesia's biggest general insurer.

The 30-year old company posted a Rp 5.8 billion net profit in 1996, up from Rp 2.6 billion in 1995.

Lippo General Insurance is the general insurance arm of the widely diversified Lippo Group. It is controlled by PT Lippo Asia and PT Mitranusa Ekamulia.

Tumbelaka said 80 percent of the money raised would be used to strengthen the company's solvability through investment in securities, commercial papers, deposits or direct participation.

The remaining 20 percent will be used to finance branch network expansion and to develop information technology, research and development, and human resources.

Tumbelaka said the company would target middle-income customers who make up between seven and 20 million of Indonesia's 200 million people.

Besides its own marketing capability, the company would capitalize on Lippo Group's wide business networks to attract customers, he said.

Lippo Group's business includes financial services, retailing, urban development and health care services. (jsk)