WITH a seemingly insatiable appetite for new assets and capital, Lippo Ltd has established itself as one of the fastest-growing corporate entities in Hongkong. But more needs to be done, if the Indonesian Riady family's ambition is to become a major conglomerate.
The company was known as Public Finance until being drawn into the Indonesian based Lippo Group by Mr Mochtar Riady in April 1991.
Since then, the Riady family has successfully shaped Lippo Ltd into its listed flagship with the capital base established through a series of new shares subscriptions and acquisitions.
Mr Mochtar Riady's younger son, high-flier Stephen Riady, who, at 32, is already a force in the group, spoke enthusiastically about its corporate strategy.
''Investors may get upset about last year's sizeable cash calls when Lippo Ltd needed the money to buy assets that would make it an investment holding company with exposure to various businesses,'' he said.
''The strategy was a must as it would be a lot easier to borrow money from the banks by showing to them a company with solid business and low gearing than the one that is just desirous of being big through acquisitions.'' At the end of last year, Lippo Ltd's shareholders' funds totalled $2.32 billion while debt amounted to only $161 million.
Mr Riady realises that it is time for the company to capitalise on the earnings base, with the new group structure in place.