M Cash subsidiary NFC Indonesia seeks to raise up to $24m via IPO

PT NFC Indonesia

PT NFC Indonesia, a subsidiary of listed digital kiosk company M Cash Integrasi, has announced plans to list its shares on the Indonesia Stock Exchange (IDX) in a bid to raise up to $24 million.

In an official release, NFC said it will offer up to 166.67 million new shares, equivalent to 25 per cent of its paid-up capital, at a price ranging between Rp 1,500 and Rp2,000 per share.

NFC currently operates two businesses. It integrates a real-time phone credit marketplace for its digital exchange business. Also, the company works through its subsidiary PT Oona Media Indonesia to offer OONA TV, a free TV and video entertainment application.

NFC says the IPO is part of the company’s strategy to accelerate its business pace to be the biggest digital exchange hub in Indonesia, aiming to play a central role in the daily lives of a tech-savvy Indonesian society.

The company says it will use 60 per cent of the funds raised from the IPO for its working capital needs, 30 per cent for various digital investments, including IT development, and will allocate the remaining 10 per cent to investments in human capital.

“As the most innovative digital exchange platform to go public, we believe this is just a start, with many more innovations in the pipeline that NFC will bring such as Digital Advertisements Exchange, Communication Platform Exchange and other Digital Exchanges to the market, NFC is on its way to create one of the biggest digital exchange hubs in Indonesia,” said NFC chairman Suryandy Jahja. 

NFC is a subsidiary of Kresna Group-backed M Cash Integrasi, which in October last year became the second startup to list on the IDX. Its $22-million IPO was reportedly oversubscribed by 10.69 times, while pooling for retail investors was oversubscribed by 69.5 times.

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