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)