Lippo to issues rights shares

JAKARTA (JP): Publicly-listed PT Lippo Securities will soon issue rights shares to increase its capital base by Rp 195.75 billion (US$85.10 million), the company announced over the weekend.

The securities company said that the shareholders registered as of July 12 can subscribe to three new shares for every share they hold at Rp 1,000 each.

The plan to issue rights shares was approved by the company's shareholders in an annual meeting here on Friday.

The company's president, Charles de Queljoe, said that the issuance of the rights shares would increase the company's capital base to Rp 400 billion.

He said Lippo Securities has raised its 1996 pretax earning forecast from Rp 32 billion to Rp 54 billion, given the better than anticipated results in the company's financial performance in the last few months.

"All of our major revenue drivers, comprising of commission income, corporate finance fees, proprietary trading and net interest income, have shown better than anticipated results," he said.

The company's after-tax profit for 1996 is expected to reach Rp 40 billion.

The shareholders' meeting also approved dividend payments totaling Rp 13.05 billion for the 1995 financial year.

De Queljoe said that each shareholder, registered as of July 23, will receive Rp 100 per share and that the dividend will be payable on Aug. 21.

He said that the securities company's daily transaction volume has more than tripled from last year's figures and that it will operate a new dealing room, as well as recruit more sales staff members to support trading activities. (hen)