May 27, 2011

Lippo Securities & Rp207 bio rights issue

PT Lippo Securities Tbk, a financial services company owned by Riady family, will raise Rp207.06 billion from issuance of 1.48 billion new shares with pre-emptive rights to pay the debt and enhance its working capital.
In a prospectus published today, the company has set the price at Rp140 a share. Each holder of three existing shares recorded on July 8, 2011 will entitle four new shares.
The company will seek shareholders approval on reverse stock plan in an extraordinary general meeting scheduled on June 10, 2011.
It plans to reverse stock with a 2:1 ratio or inched-up its nominal price from Rp500 to Rp1,000 a share. The company will allocate Rp159.115 million to pay the debt to Fortress Capital Ltd and will disburse US$2.03 million to its majority shareholder Pacific Asia Holdings.
The rest of the proceeds will be used to strengthening its working capital. The listing of the new shares at the Jakarta Stock Exchange is scheduled on July 12, 2011 and the trading will begin on July 12 until July 19, 2011.

Disclosure: No position at the stock mentioned above.

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