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Lippo to hold rights issue in first quarter of 2018
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Property firm PT Lippo Karawaci seeks to conduct a rights issue next year to raise fresh funds. (Courtesy of/lippokarawaci.co.id)
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roperty developer PT Lippo Karawaci plans to hold a rights issue next year to raise Rp 600 billion (US$44.34 million) to strengthen its capital reserves and support expansion.
Lippo president director Ketut Budi Wijaya said the offering was expected in the first quarter of 2018.
“The terms and conditions of the limited pubic offering will be subject to the approval of the general shareholders meeting next week [Dec. 15],” he said on Friday as quoted by Kompas.com.
Read also: Lippo Group launches its first REIT in IndonesiaSelling new shares at Rp 635 apiece, Lippo will dillute the shares of shareholders who do not exercise their rights to 5.99 percent.
Ketut said the company would use the proceeds of the rights issue for capital expenditure and investments made on its own as well as by its subsidiaries.
“This is also aimed at maintaining the debt-to-equity ratio at a reasonable level, which will serve the interests of the shareholders and bondholders. We will be continue managing the cashflow thoroughly, monitoring all costs and apply a capital recycling strategy,” he said.
As of Nov. 30, the market capitalization of Lippo in the Indonesia Stock Exchange (IDX) reached Rp 13.3 trillion. (sha/lnd)
