Lippo Insurance to float shares

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)