M Cash Integrasi only the beginning, 3 more subsidiary IPOs from Kresna, says founder Michael Steven

Michael Steven. Photo: Kresna website

Publicly-listed investment firm Kresna Graha Investama will push three of its subsidiaries operating in the insurance and digital space, among others, to go public starting next year, founder and president director Michael Steven told this portal.

“MCI is only the beginning. There will be more to come in terms of IPO. We’re trying to push for our insurance company to go public next year, along with another one or two of Kresna’s subsidiaries,” Steven said on the sidelines of M Cash Integrasi’s press conference in Jakarta.

Steven remained optimistic about Indonesia’s capital market’s 2018 prospects, saying that the upcoming presidential election will have little to no effects over the market’s overall performance. Indonesia is slated to hold the elections – one in which the incumbent president Joko ‘Jokowi’ Widodo will participate – in 2019.

“Investors will watch (the election’s) developments closely but the index will remain on the increasing trend. Just like 2014,” he reassured.

Steven founded the financial and investment company Kresna Group in 1999. The group’s core businesses have been asset management and securities – and, more recently, digital and technology, which it tapped in 2015.

The group started its digital portfolio with satellite services DNK, ticket booking platform Padiciti, and on-demand business performance app Kpisoft, among others. It also teamed up with Bank Mandiri to launch Mandiri e-cash (including LINE Pay e-cash), and partnered with China’s Wecash Group.

In total, the company has purchased or set up joint ventures with as many as 10 companies, with deal sizes ranging from $100,000 to $10 million. The company funds these purchases using its own cash, and as such has been holding off dividends. Kresna claims to be the only financial-digital hybrid company listed on the IDX.

In April this year, Kresna bought a 17.6 per cent stake in digital kiosk firm M Cash Integrasi (MCI) for an undisclosed amount, and begun the process for its IPO in May.

Institutional investors from Hong Kong, Singapore, US, UK, and Australia participated in MCI’s anchor book allocation in September, oversubscribing to the firm’s share offer by about 7.2 times.

MCI officially kicked off the book building last week, setting its price band at between Rp 1,300 and Rp 1,450 ($0.097 – $0.11). The price represents a price-to-earning ratio (PER) of 22 – 24x in 2018, according to underwriter Trimegah’s report.

“Bookbuilding period will start from Oct 6 to Oct 13, effective statement will be issued by the Indonesian Financial Services Authority (OJK) by Oct 20, while offering period is scheduled for Oct 24 – 26. We’re hoping to list on the Indonesian Stock Exchange (IDX) by Oct 31,” Suryandy Jahja, director of MCI, told reporters in Jakarta last week.

MCI develops interactive digital “kiosks” that sells a wide range of products – from phone credit, tickets, vouchers and promotions, and many more. The kiosk machine can generate any physical cards, including mobile SIM and e-money, with automatic registration.

MCI aims to launch over 1,000 outlets by the end of this year, and double that number in 2018. In 2016, the company reported Rp 480 billion in revenues.

Asked whether MCI plans to expand beyond Indonesia, Jahja replied that the company has been approached by “several parties”, who have expressed interests in becoming partners should it ever decide to expand regionally.

“There have been several institutions that have tried to engage us in talks about expanding regionally. But for now, we have decided to focus on Indonesia first to deliver the numbers that we have promised,” Jahja said.

It has been an eventful month for the Indonesian tech scene that is witnessing two of its startups going public – the first ever startup IPOs for the country. Last Thursday, O2O e-commerce service startup Kioson debuted shares trading on the IDX after a $3.4 million IPO – which was oversubscribed more than 10 times during the bidding period.

The company’s shares rose 50 per cent at the opening of Thursday’s trading.

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.

Also Read:

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

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

Wecash enters Indonesia through JV with Kresna Investments

Indonesia DB: Saratoga enters hospital business; Kresna purchases 35% in DuaEmpat; BSD-Mitsubishi form JV

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.