JAKARTA. Shareholders of PT Lippo Cikarang Tbk (LPCK) has approved the plan of rights issue of 3 billion shares, despite its profit slowing down in the first half (H1) of 2024.

During Extraordinary General Meeting of Shareholders (EGMS) held on November 19, 2024, the shareholders agreed upon the issuance of LPCK’s new shares worth IDR 500 each.

The proceeds of the rights issue will then be allocated as working capital and capital investment in several subsidiaries.

“The rights issue is aimed for business expansion, as well as boosting revenue, profitability, and business prospects of the company in the future,” said Gita Irmasari, President Director of LPCK, as quoted today (21/11).

According to IDNFinancials data, LPCK only posted net profit of IDR 71.13 billion in the first half (H1) of 2024. This number slipped 3% year-on-year (yoy) from IDR 73.36 billion recorded in the same period last year.

However, until September 2024, LPCK’s marketing sales have managed to reach IDR 1.05 trillion, or equal to 74% of 2024 target set to IDR 1.43 trillion.

As of now, 80.83% of LPCK’s shares are under the control of PT Kemuning Satiatama. Public investors claim the remaining 19.17%.

After this rights issue, investors’ portions will potentially be diluted by up to 52.82% should they choose not to participate in the new shares’ issuance. (KR/ZH)