Jakarta. Urban developer Lippo Cikarang plans to issue new shares to raise about Rp 800 billion ($59 million) in the first quarter of 2018, the company said in a statement on Friday (12/09).
Proceeds from the rights issue will be used as business and working capital.
The company said it plans to issue the new shares at Rp 3,800 apiece, which in total will amount to the equivalent of 27.04 percent of its enlarged capital.
"Through this rights issue plan, LPCK will be able to expand its business according to its mission and vision. I am grateful for the shareholders' approval for this plan, which is now moving forward for the execution, which is aimed to be completed in Q1 2018," Lippo Cikarang president director Ivan Budiono said in the statement, referring to the company by its stock ticker symbol.
"This rights issue is performed as a step by the company to generate capital necessary to fund the development of the company business, while at the same time maintaining its balance sheet profile prudently," he added.
The rights issue was approved during an extraordinary general meeting of shareholders on Nov. 8.
Lippo Cikarang has developed an integrated real estate and light industrial park at Cikarang in Bekasi district, about 40 kilometers east of Central Jakarta.
It controls approximately 3,250 hectares, with its township, which has 48,250 residents, supported by various facilities, including shopping centers, schools and hospitals.
The company's industrial park is currently home to about 1,000 light industries, among them several well-known manufacturers, such as Sanyo Electronics Indonesia, Indonesia Epson Industry, Danone Indonesia, Gramedia and Kalbe Farma.
The Jakarta Globe and Lippo Cikarang are both affiliated with the Lippo Group.