DSA Summit: Much optimism for Indonesia’s first startup IPO Kioson

Kioson
Photo: Kioson's Facebook page

Indonesia’s O2O e-commerce service Kioson’s IPO is likely to be oversubscribed as there is much optimism in the market, managing partner of Skystar Capital, Abraham Hidayat, told audience at DEALSTREETASIA’s Asia PE/VC Summit in Singapore last week.

Kioson will be the first Indonesian startup to go public, and will be the first from its industry to list on IDX. Kioson plans to raise Rp 42 billion ($3.4 million) from offering up to 150 million shares – equivalent to 23.07 per cent of the enlarged paid capital – at Rp 280 ($0.02) apiece.

“From what I heard the (Kioson’s) fundraising has been oversubscribed. There’s a lot of interest from the market, especially from strategic and financial investors,” Hidayat told this portal on the sidelines of the panel.

“We can already feel the impact of tech, so there’s definitely much optimism and interest. I believe Kioson’s and M-Cash Integrasi (MCI – digital kiosk service startup backed by Kresna Group) will receive good response,” he added.

Kioson announced its plans to tap the public markets early this month. The firm has said it will use the IPO proceeds to acquire affiliated tech company and aggregator of mobile data e-vouchers Narindo Solusi Komunikasi. Narindo partners with mobile phone operators and e-commerce firms like Lazada, Tokopedia, and Blibli. Meanwhile, the rest of the fresh proceeds will be allocated for working capital, including inventory procurement and operational expenses.

Founded in 2015, Kioson is often compared to O2O solution provider Kudo, which was bought by Grab for $100 million. It provides an online digital platform to the small and medium size retailers through partnership system, allowing retailers in the rural areas to conduct digital transactions with big companies in urban areas.

Kioson is aiming to be listed on the IDX by October. Meanwhile, digital kiosk MCI is targeting a November IPO, and, if successful, will be the second startup to be listed on the country’s bourse. It plans to raise up to Rp250 billion ($18.7 million), releasing new shares equivalent to 20 per cent of its enlarged capital. Based on the share sale, the valuation of the company can be pegged at about $93.5 million.

Proceeds from the IPO will be used for business expansion and working capital requirements. “We are one year ahead of what we told investors on unlocking values through IPO,” Suryandi Jahja, Kresna managing director, had told this portal.

MCI can generate any physical cards, including mobile SIM and e-money, with automatic registration. It also provides other services such as phone credit top-up, routine bill payment, mall directory, advertisement (co-branding), voucher and promotions, flash sales points, e-commerce transactions and other digital products.

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