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Lippo’s Siloam Hospitals Cuts IPO by 40 Percent After Stock Drop

PT Siloam International Hospitals, a unit of PT Lippo Karawaci Tbk (LPKR), cut the size of its planned initial public offering by almost 40 percent after Indonesian stocks slumped.

The company is seeking to raise as much as 1.48 trillion rupiah ($136.7 million) by offering shares at 9,000 rupiah to 9,500 rupiah each, terms for the deal obtained by Bloomberg News showed. Siloam Hospitals had previously sought up to $223 million in the sale.

The Jakarta Composite Index (JCI) fell 8.7 percent last week, and Indonesian stocks have dropped at the fastest pace worldwide this quarter, fueled by speculation that the U.S. Federal Reserve will soon cut stimulus that has inflated asset prices in emerging markets.

Siloam Hospitals’ IPO is the second deal in Jakarta this month that has been hampered by stock market swings. Sinarmas Land’s Puradelta Lestari, the developer of an industrial estate project in Jakarta, also decided to put on hold its $191 million IPO in August.

Siloam plans to price its shares tomorrow and may start trading on September 12, according to the term sheet.

To contact the reporter on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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