Indonesian social payments platform Netzme targets to raise up to $15m in Q4 IPO

Photo by Jonas Leupe on Unsplash

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.

Netzme competes with other e-money platforms in the domestic market such as DANA, OVO and Go-Pay.

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.

 

 

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

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  • 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. 
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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.