JAKARTA (TheInsiderStories) – Indonesia Stock Exchange reported there are a crossing transactions on the shares of property developer, PT Lippo Karawaci Tbk (IDX: LPKR) since last week. A total of 1 billion shares were traded in the negotiating market with prices Rp305 a share or with total amount Rp305 billion (US$21.03 million), said the bourse.
The jumbo transaction taking place on July 28, 2020, helped by the local brokerage firm, PT Ciptadana Sekuritas Asia. The exercise price is far above the average price of the issuer shares in the last two years.
This was the umpteenth time crossing transaction on shares of the issuers controlled by the Riady family. On Feb. 28, there was also a self-closing transaction shares of Lippo Karawaci worth of Rp3.2 trillion. The share crossing involved 6.3 billion shares in the negotiating market. The transaction occurred four times with a price range of Rp 543 to Rp825 a unit.
Based on the official data, the shareholders of the company are PT Inti Anugerah Pratama at 24.45 percent, Sierrra Corporation at 16.90 percent, PT Primantara Utama Sejahtera 10.45 percent, John Riady 0.00 percent (527,000 shares), and public 48.20 percent. The public ownership has reduced from 50.48 percent and the portion of Inti Anugerah increased from initially hold 22.18 percent.
Since last year, the developer has seek various funding scheme to refinance its obligation to its lender. In January 2019, the developer has divested its $19.5 million, hospital and clinic in Myanmar to Singapore’ OUE Lippo Healthcare Ltd. The healthcare has been taken from another Lippo-owned company, PT Waluya Graha Loka.
Its unit, OUELH Healthcare Service Pte. Ltd., and OUELH healthcare Assets Pte. Ltd., has absorbed the hospital and clinic shares. Then, on February, 2019, the Riady famiiy sold around 9.44 percent of the shares through Inti Anugerah Pratama.
In the following month, Lippo Karawaci has secured funding around $1.01 billion to support the businesses and pay the debts, comprising of $730 million from right issue and $280 million from the completion of its asset divestment plans. The company said, the two fund managers, George Raymond Zage III and Chow Tai Fook Nominee Ltd., have signed an undertaking agreement to purchase rights and to subscribe the rights issue shares with a total commitment of $70 million.
The rights exercise price has been set by the company at Rp235 a share, represents a discount of 8.2 percent to the last closing price of the company on March 11, 2019. In June 2019, the issuer released 47.82 billion shares or 67.74 percent of its issued and paid capital of the company with price is tagged at Rp235 per share.
The company raises around Rp11 trillion for paying debt, paying company’ obligations, and increasing direct and indirect participation of subsidiaries. Last January, Lippo Karawaci launched a five-year bond, valued at $325 million. The notes have a yield of 8.125 percent and the proceeds will be used to partially repay bonds maturing in 2022.
Now, the company is in the final stages of securing a facility to refinance the remaining $100 million in bonds upon which unit of Lippo Group and will have no debt maturities over the next five years until 2025.
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