Photo by Kioson

JAKARTA (TheInsiderStories) – PT Kioson Komersial Indonesia, an online-to-offline (O2O) e-commerce company, announced it will conduct an initial public offering (IPO) as the first startup to run on the Indonesia Stock Exchange (IDX). The IPO is underwritten by PT Sinarmas Securities.

150 million shares, equal to 23.1 percent of the company, are offered at a price of just over US$0.02 per share. Of the $3.1 million to $3.4 million Kioson expects to raise, it will use 76 percent to acquire another business, a hosting company PT Narindo Solusi Komunikasi.

Kioson’s Director Jasin Halim said, the IPO is considered the best option to strengthen the company’s fundamentals over the long run, so that business performance can grow sustainably. Moreover, Kioson becomes a digital technology bridge between underserved markets, enabling all to go online.

Founded in 2015 by Roby Tan and Viperi Limiardi, the startup enables underserved communities to carry out online transactions with the assistance of individual agents. It is often compared to Kudo, which was acquired by ride-hailing giant Grab earlier this year.

Kioson has more than 15 thousand kiosk partners, spread across 384 cities in Indonesia. The majority of the kiosks are sited in second-tier cities. Kioson targets an increase of 100 percent of kiosk partners by end-2017.

Based on financial statements as of April 30, 2017, Kioson’s turnover has reached Rp25.9 billion, with total assets reaching Rp44.77 billion for a 25.29 percent increase, compared to its assets as of Dec. 31, 2016.

Note that IDX has provided facilities for start-up companies desiring access to capital markets, with a number of mechanisms through the acceleration board. This initiative will complete the existing of Financial Service Agency (FSA) regulation No. 53/POJK.04/2017 as well as FSA regulation No. 54/POJK.04/2017 about Public Offering and Capital Increase by SMEs.

This initiative will allow SME’s to rise fund at maximum Rp1 trillion from the stock market. As we know, President Joko Widodo continues explore how to create policies or instruments to catch up public and private investment for SMEs through capital market.

Nicky Hogan, IDX Development Director explained, that this acceleration board will peg the rate to 20 percent for SME IPO, without concerning the number of shares outstanding. SMEs can have a sufficient IPO net tangible assets at least Rp5 billion.

Since last April, IDX has selected 24 companies which consist of seven financial technology companies, five e-commerce firms, three lifestyle companies, three IoT firms, two news media companies and one software as a service to participate in IDX incubator program, that aims to mastering IPO process and preparation.

“We’ve set up an incubator for start-ups and SMEs. The program will be held in five months.  There are at least 24 SMEs has been selected. But this does not mean that they are ready for an IPO. But this is part of the process to get there,” said Nicky.

 

Since last 2003, there are only seven SMEs entering IDX. Okansa Capital was the first in 2003. Hortus Danavest, Yulie Sekurindo, Sanex Qianjiang Motor International followed a year later. Panca Global Securities joined in 2015, Okansa Persada in 2006 and Laguna Cipta Griya in 2007.

Previously, PT Mitra Komunikasi Nusantara Tbk (IDX: MKNT) declared its plan to participate in the IPO of Kioson. Currently, the share of MKNT ownership in Kioson is about 4.9 percent and after IPO around 10 percent.

On June 19, 2017, Kioson announced that they have received investment from MKNT. MKNT itself is a company with business in the trade of gadgets such as smartphones and tablets, to pulse phones.

Koson itself is a service that allows people with limited internet connections to be able to shop online through grocery merchants around them. Not only facilitate the sale and purchase online, the traders can also serve the sale of credit, bill payments, to the activity of interbank transfers by becoming agent Laku Pandai.

This fresh fund is planned they will use to develop various features and services that exist in their platform.

Rate: US$1 = Rp13,326.

Writing by Elisa Valenta, Email : elisa.valenta@theinsiderstories.com

 

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