Jakarta. Shareholders of Lippo Cikarang, the urban development arm of Lippo Group, approved the company's plan for a rights issue in an extraordinary shareholders meeting on Wednesday (09/11).

The pre-emptive rights issue is launched to raise fresh funding for business expansion.

The property developer plans to issue a total of 300 million new shares at an as yet undisclosed price.

Existing shareholders who own at least four shares will be entitled to buy one new share each.

If the shareholders forgo the rights issue, their ownership will be diluted by 27.04 percent.

The company will use the proceeds from the rights issue to fund business expansion through its subsidiaries and allocate them to its working capital.

The shareholders meeting also appointed Ivan Budiono as the new Lippo Cikarang president director, replacing Bartholomeus Toto.

Several new executives have also been appointed to the company's board. The complete list of new appointees is as follows:

Board of Commissioners:

President commissioner: Ketut Budi Wijaya (replacing Lee Heok Sen) Independent commissioner: Hendry Leo Independent commissioner: Hadi Cahyadi Independent commissioner: Didik Junaedi Rachbini (replacing Setyono Djuandi Darmono) Commissioner: Sugiono Djauhari Commissioner: Wijaya Subekti (replacing Chan Chee Meng)

Board of Directors:

President director: Ivan Setiawan Budiono (replacing Bartholomeus Toto) Director: Hong Kah Jin Director: Ju Kian Salim Director: Hartono Tjahjana G. (replacing Ivan Setiawan Budiono) Director: Alexander Yasa (new position) Independent director: Sony Independent director: Juvantia

"I want to to thank shareholders who have supported this plan so the company can expand its business according to its mission and vision. I am grateful for the shareholders' trust and would like to express my appreciation to the board of directors and board of commissioners for their contributions and guidance," Ivan said in a statement.

"The broad experience of the new directors and commissioners, in their respective fields, will strengthen the management and operations of Lippo Cikarang," Ivan said.

Lippo Cikarang is an urban developer that has developed more than 3,250 hectares of land on the outskirts of Jakarta.

It has built more than 14,000 housing units now occupied by 50,720 people.

Around 484,300 workers are employed by 993 manufacturing companies with plants and offices in Lippo Cikarang's industrial area.

Lippo Cikarang is a part of Lippo Karawaci, one of the largest property companies in Indonesia.

Lippo Cikarang is listed on the Indonesia Stock Exchange (IDX) with a market capitalization value of Rp 2.6 trillion ($196 million) as of Oct. 31, 2017.