Metrodata to invest Rp 2.7b on e-businesses
JAKARTA (JP): Publicly listed IT products distributor PT Metrodata Electronics said on Monday it would use Rp 2.71 billion (US$339,520) of fresh funds to finance the company's expansion into Internet businesses this year.
Company president Lesan Limanardja said Metrodata would launch a new e-commerce service, an Internet service provider, an IT portal, and an Internet development and application solution provider within the third quarter period of this year.
"We aim to be the biggest Internet company. We are upbeat that our business will be very much strengthened with the launch of our new Internet businesses," he said after the company's shareholders meeting.
He said the huge investment in the Internet sector would be funded by a part of the proceeds the company would raise in an upcoming rights issue.
In the meeting, the shareholders approved the management's limited public offering to raise the required investment funds.
The company will issue 127 million new shares, each with a par value of Rp 50, in the limited public offering, which will be launched next month. It expects to raise about Rp 6.03 billion from the rights' shares.
Lesan said the company would use 55 percent of the proceeds to pay off Metrodata's offshore debts and the remaining 45 percent for investment in its Internet businesses.
He said the funds allocated for the Internet businesses would also be used to increase Metrodata's shares in its Internet sub- holding company, PT E Metrodata Com (ECM), to 99.99 percent from its present 99.83 percent.
EMC has six Internet-based subsidiaries: business-to-customer e-commerce provider PT Metrodata E Konsumer; business-to-business e-commerce provider PT Metrodata E Bisnis; Internet services provider PT Metrodata Sentra Layan; Internet services provider PT Metrodata Sentra; Internet access provider PT Metrodata Global Akses; information technology portal PT Metrodata E Portal; and application service provider PT Metrodata Solusi Internet.
None of these companies have started operations, except for business-to-consumer e-commerce provider Metrodata E Konsumer, which was launched in April.
The company said it planned to launch the IT portal at the end of July, while the Internet service, Internet development and application solution providers would start operations in the third quarter of the year.
Leman said the business-to-business e-commerce enterprise was scheduled for an August launch.
He said the new e-commerce businesses would support Metrodata's IT-related product distribution business, such as personal computers, notebooks, printers and other peripherals.
"We expect the new B2B operation will help boost our total sales in the sector to about Rp 800 billion this year from only Rp 400 billion last year," he said.
He said Metrodata was projected to book total sales of around Rp 850 billion this year, up from the Rp 676 billion it made last year.
"But the projection is based on normal business conditions, and does not include the performance of our new Internet businesses," he said.
Metrodata, whose shares are listed on the Jakarta and Surabaya stock exchanges, recorded Rp 200 billion in sales revenues and Rp 12 billion in pretax profits as of the end of March this year. (cst)