Exclusive: Indonesia startup M Cash Integrasi sets IPO price band, receives strong anchor book

Indonesian currency Rupiah on hold by a cashier. Photo: Reuters

Indonesia’s second e-commerce startup to go public, digital kiosk service provider M Cash Integrasi (MCI), has set its IPO price at between Rp 1,300 and Rp 1,450 ($0.097 – $0.11), DEALSTREETASIA has learnt.

Kresna Group-backed MCI is currently offering up to 216 million shares, or equivalent to 25 per cent of its paid-up capital, in an effort to raise $22 million (Rp 300 billion) in fresh funds. It has also reportedly received a strong response to its anchor book, driven by the market’s optimism about the technology space in the country.

“(There has been) very strong, super-hot anchor book interest from investors from Hong Kong, Singapore, Australia, UK, and the US,” Kresna managing director Suryandy Jahja told this portal.

The anchor book allocation period was closed last Wednesday, while other investors can still place their bookings from Oct 5 until Oct 19.

MCI’s valuation was pegged at about $93.5 million based on the share sale, Jahja had said when DEALSTREETASIA first reported the plan in May. He said the fresh money would be used for business expansion and working capital requirements.

“We want to make sure that the anchors will be good names, so we will be very, very selective,” he stated then.

Kresna Graha Investama, through its unit Kresna Usaha Kreative (KUK), bought a 17.6 per cent stake in MCI back in April. The company said that the purchase was expected to pave the way for it to be “Indonesia’s digital distribution champion”.

MCI can generate any physical cards, including mobile SIM and e-money, with automatic registration. It also provides other services such as phone credit top-up, routine bill payment, mall directory, advertisement (co-branding), voucher and promotions, flash sales points, e-commerce transactions and other digital products.

By the end of this year, Kresna will help MCI launch 1,000 outlets, and double that number in 2018. MCI aims to grow revenues “exponentially” in the years ahead. In 2016, the company reported Rp 480 billion in revenues.

Much optimism for Indonesia startup IPOs

If all goes according to plan, MCI will be the second startup to be listed on the Indonesian Stock Exchange (IDX) after Kioson, an O2O e-commerce service company and a rival to Grab’s Kudo. Market observers have said that there is “much optimism and interest” in the market over Indonesia’s first two e-commerce IPOs.

Kioson plans to raise Rp 42 billion ($3.4 million) by offering up to 150 million shares – equivalent to 23.07 per cent of its enlarged paid capital – at Rp 280 ($0.02) apiece.

“From what I heard, (Kioson’s) fundraising has been oversubscribed. There’s a lot of interest from the market, especially from strategic and financial investors,” Abraham Hidayat, managing partner of Skystar Capital, had said recently.

As exits in the region still remain dominated by M&As and trade sales, many are expecting MCI and Kioson to be spurring more startup IPOs in Indonesia. But not all observers agree.

“Of course (IPOs) are good for the market but it might not be the most important thing from our portfolio perspective. Exit is important, but what’s more important is that whether IPO will help the company to the next step. If you can prove or show that IPO is really helpful for the firm, that’s good. If not then we don’t need to consider IPO as an exit or fundraising,” said Alpha JWC Ventures managing partner Jefrey Joe.

Indonesia-based online store Bhinneka.com had first expressed its wish to go public back in 2015. Bhinneka is one of the leading platforms that sells electronics-related products, and is backed by local VC firm Ideosource.

The company had said it would use the money to “ramp up its marketing efforts, and become a dominant player in more product categories.” It had reiterated its IPO plan in 2016, then 2017, before postponing it to 2020.

Also Read:

DSA Summit: Valuations are down and it is back to business fundamentals in Indonesia

DSA Summit: Much optimism for Indonesia’s first startup IPO Kioson

Indonesia’s Kioson picks IPO route over VC funds, to become 1st startup to tap IDX

Exclusive: Kresna-backed Gotomalls.com to raise $5m this year

Exclusive: M Cash Integrasi to buy 25% of 24Print.id, Kresna to close 3 more deals

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.