JAKARTA – PT Lippo Cikarang Tbk (LPCK) is undertaking a significant capital increase through a rights issue to continue financing its Meikarta project, following a loss of IDR1.6 trillion.

The company plans to issue 2.97 billion new shares in the rights offering, representing 52.61% of its paid-up and issued capital. The rights issue will be conducted at a ratio of 100:111.

With the exercise price set at IDR 500 per share, LPCK expects to raise up to IDR 1.49 trillion from this coIDRorate action. The material transaction received shareholder approval last November.

PT Kemuning Satiatama (KMST), LPCK's principal shareholder, has committed to participating in the rights issue, pledging funds worth IDR 1.2 trillion. KMST has already advanced IDR 750 billion to the company.

LPCK's management stated that approximately 95% of the proceeds from the rights issue will be allocated as a capital injection into PT Mahkota Sentosa Utama (MSU), the developer of the Meikarta project. The remaining funds will be used for working capital.

On Monday (9/12), LPCK shares rose slightly by 0.83% or 5 points to close at IDR 605 per share. Foreign investors took advantage of the rise to conduct a net sell of 141,200 shares, valued at IDR 85.94 million. (KR/ZH)