Jakarta-based Netzme Kreasi Indonesia (NKI), which operates social payments platform Netzme, is planning to raise up to $15 million in an initial public offering on the Indonesia Stock Exchange (IDX) in October or November 2019, according to the company’s CEO Vicky Ganda Saputra.
The company, which was previously targeting Q2 2019 for the IPO, has postponed the offering due to compliance issues, Saputra told DEALSTREETASIA. NKI expects to submit its IPO prospectus to the Financial Services Authority (OJK) in July 2019.
Established in 2015, NKI is majority-owned by two local business groups, Danatama Group (51 per cent) and ACR Global Investment (38 per cent).
The company will sell around 20-30 per cent stake by issuing new shares in the offering, with a target to raise $10-15 million. It intends to use the IPO proceeds to meet its growth capital needs.
However, Netzme’s main idea for conducting the IPO is not only to raise funds but to attract new investors and partners in the future. When a company comes under the purview of capital market regulations, its operations become more transparent and professional, Saputra reasoned.
The company has not used the venture capital route to raise funds because it has the backing of certain investment companies, which are its current shareholders.
In the meantime, Netzme is open to partnerships in the form of pre-IPO and anchor investors or joint venture partners. It is ideally looking at partners who would bring in technological expertise and business networks to help the company with its growth plans.
NKI has hired local advisory firm Danatama Sekuritas as the underwriter. It will appoint another firm as an additional underwriter.
Netzme, which is modelled after China’s WeChat, combines a communication platform, social media and micro-level entrepreneurship facilitators, who can help convert e-money into cash. Some features in Netzme’s platform include crowdfunding, social gathering, mobile phone credit, electrical pulse, online bill and payment point online bank.
Currently, Netzme has around 2 million users located in the secondary and tertiary cities in Indonesia, Saputra added. It targets to reach the unbanked population in rural areas.
So far, Netzme’s total transaction value has reached an IDR 1 billion (USD 701,978) which could grow significantly after it receives the e-money licence from Bank Indonesia.
Apart from Netzme, IDX has a pipeline of IPOs including Menteng Heritage Realty, MNC Vision Networks, Jasnita Telekomindo, Indonesian Tobacco and Softex Indonesia. The country’s capital market is expected to see action towards the second half of this year as corporates who were earlier adopting a ‘wait and watch’ policy are gearing up to make their offerings soon. IDX data noted 21 companies have lined up their IPO plans this year, as previously reported by us.