Indonesia startup Kioson IPO oversubscribed 10 times, shares rise 50% on debut

Photo: Kioson's Facebook page

Indonesia’s O2O e-commerce service Kioson’s much-anticipated initial public offering (IPO) to raise Rp 45 billion ($3.4 million) was oversubscribed more than 10 times during the bidding period, the startup revealed today.

Kioson is now officially listed on the Indonesian Stock Exchange, becoming IDX’s 24th listing this year and the first ever Indonesia-based startup to do so. The company’s shares rose 50 per cent at the opening of Thursday’s trading.

More than 50 per cent of the investors during the booking period are retail, according to CEO Jasin Halim.

“Kioson’s IPO is an important milestone for the Indonesian capital market because this is the first time retail investors can invest in a tech startup. We thank all parties that have participated and helped Kioson during the IPO process. The success of this corporate action can set a precedent for other startups to consider IPO as alternative fundraising,” Halim said in a statement.

Kioson plans to use majority of the IPO funds to acquire Narindo Solusi Komunikasi, an affiliated tech company and an aggregator of mobile data e-vouchers. Narindo partners with mobile phone operators and e-commerce firms like Lazada, Tokopedia, and Blibli.

Like many Indonesian startups, Kioson still suffers losses in profit – reporting $330,000 in losses as on April 2017 despite rapid top-line growth. But investors’ appetite remained high as optimism and interest over Indonesia’s tech and startup scene continue to grow.

“What we had told investors when we spoke to them is that Kioson does not compete with the e-commerce giants (ie.Tokopedia, Lazada, Bukalapak). Rather, we complement them. So there’s a tremendous prospect for them here,” Halim stated.

With the acquisition of Narindo, Kioson aims to break even in 2018.

Currently, Kioson facilitates about 500,000 monthly transactions. It sells products from Tokopedia, Elevania, and Berrybenka, among other stores. The startup also collaborates with ride-hailing app Uber, and a number of banks such as Bank Sinarmas and BNI.

The company now claims to have more than 19,000 partners across 384 Indonesian cities, and expects to see the number grow to 30,000 by the end of the year. In addition to distribution channels, the company will also expand its products. Kioson is now in the process to include hotel and flight ticketing services.

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