Lippo Life to split stocks to improve liquidity
Lippo Life to split stocks to improve liquidity
JAKARTA (JP): Lippo Life Insurance, a publicly listed life
insurance company of the Lippo Group, will split its shares to
improve their liquidity.
The company announced here over the weekend that the stock
split -- to be effective on April 19 -- will cut the nominal
price of shares to Rp 500 (22 U.S. cents) each from Rp 1,000 at
present.
The company also plans to distribute a bonus share for every
one existing share. As a result, Lippo Life shareholders owning
one share will end up owning four shares.
By the stock split, the company's shares on the market will
increase by 400 percent from 48 million to 192 million shares.
In addition to the split, the company also announced a program
to promote a new share ownership plan with the aim to promote
wider Lippo Life shares ownership.
The program, it added, would be promoted among the 1.8 million
customers of the Lippo Life Insurance and Lippobank.
Lippo Life Insurance, which is listed on the Jakarta Stock
Exchange, has a market capitalization of over Rp 500 billion.
Through 121 sales offices throughout the country, Lippo Life
claims to control 18 percent of the local insurance market,
boasting an annual revenue of over Rp 450 billion.
"We're extremely pleased with the performance of Lippo Life,"
said Lippo Life's president, Billy Sindoro, adding that this year
his company was aiming for a net profit of Rp 29.4 billion.
He noted that his company's revenue growth has averaged more
than 50 percent per annum over the last 10 years. In the last two
years alone, growth averaged 300 percent per annum.
"We anticipate strong growth over the next decade in line with
Indonesia's healthy economic growth and growing middle income
group," he said.
Lippo Life quoted Director of Insurance at the Ministry of
Finance Sophar L. Toruan as noting recently that the Indonesian
life insurance industry has grown rapidly and will play a big
role in Indonesia's economic development.(13)