Metrodata targets $14.3m from rights issue
Metrodata targets $14.3m from rights issue
JAKARTA (JP): Publicly listed PT Metrodata Electronics expects
to raise about US$14.3 million from the its limited public
offering next month.
Company president Lesan Limanardja said here on Thursday that
about 60 percent of the funds raised from the rights issue would
be used to finance the company's expansion into the Internet
business.
The other 40 percent of the funds will go towards reducing the
company's debt, valued at $13 million as of May, down about 20
percent from last year, Lesan said.
He said the company would set up a subsidiary to operate as an
Internet Service Provider (ISP) and a software-based portal as
part of its expansion in the cyber industry.
The new portal, which will be launched in August under the
name Metrokom, will provide information on software and hardware
products, and a calendar on IT events throughout the world, he
said.
Lesan added that the ISP business, to be operated with
Thailand-based internet company PointAsia.com, also will be
launched in August under the name of Metronet.
In the limited public offering, Metrodata will issue 127
million new shares.
PT Austindo Nusantara Jaya, an investment arm of the Tahija
family, and the New York-based venture capital company, Zesinger
Capital Group, have agreed to act as standby buyers if existing
shareholders declined to exercise their rights.
Austindo president George S.Tahija said that his company had
allocated about $10 million to buy Metordata's rights issue.
Lesan said Zesinger will also set aside about $4.3 million to
buy Metrodata's issue.
Metrodata which, at present, focuses on the distribution of IT
products, started an online store in April that now has 1,000
hits per day. The online store provides business-to-customer
service and soon will include more electronics products in its
list, he said.
Lesan added that the company, which has invested $2.5 million
for its Internet business, expects to open 12 warehouses to
support its e-commerce, and develop its business-to-business
trading.
Metrodata's shares are owned 50 percent by the public and the
other half by the founders.(07)