Indoexchange to float shares Thursday

JAKARTA (JP): Internet portal operator PT Indoexchange Dotcom said on Monday it would float on the Jakarta and Surabaya stock exchanges on Thursday.

Senior vice president of Indoexchange's lead underwriter, PT Ciptadana Securities, Susanto Kusnadi, said shares of Indoexchange were oversubscribed during its initial public offering from May 2 to May 4.

"This is quite relieving, considering that the market is at its lowest level since the second memorandum was issued by the House of Representatives," Susanto was quoted as saying by Antara news agency.

The company sold 120 million new shares during the initial public offering at Rp 125 (about 1.11 U.S. cents) each.

He said Indoexchange plans to use 50 percent of its proceeds from the public offering to expand its core business.

This covers 25 percent for the expansion of its computer and server infrastructure, and 25 percent for the expansion of its financial and business-to-business portals.

Of the remaining amount, 20 percent will be used to seek strategic partners, 15 percent to finance its marketing and promotion costs, and 15 percent to strengthen its working capital.

Susanto said that Indoexchange is the first company to offer financial and capital market news about Indonesia.

Established in 1996, the company's main income sources are its online services at its portal, computer networking services, and its business-to-business services.

Indoexchange's business-to-business websites include, NexiaOnline, for the textile industry, and MiningIndo, for the mining industry. (bkm)