Travel planning startup Tourindo Guide Indonesia, popularly known as Pigijo, plans to become the country’s first company to list its shares on a new, SME-focused board of the Indonesia Stock Exchange (IDX) in January next year.
Pigijo co-founder and CEO Claudia Ingkiriwang confirmed the startup’s plan to list on the IDX acceleration board but refused to divulge specifics. IDX announced the acceleration board in July to facilitate the listing of SMEs that are not yet qualified to list on the bourse’s main or development boards.
Pigijo, which is one of 69 startups participating in an IDX incubator programme, was established in 2017 in Surabaya, East Java. The startup offers a marketplace for tourism-related services and products and enables travellers to find and determine their own itinerary.
“We hope to help the startups grow faster through the [acceleration] board… A lot of companies do not have large net tangible assets, especially startups and e-commerce firms. They will be able to utilize the bourse to raise funding,” IDX listing director I Gede Nyoman Yetna said.
The acceleration board offers SMEs a cheaper listing fee of around $1,786 (the listing fee for mainboard is up to $17,803) and allows for simpler accounting standards.
In October, IDX eased another rule for share trading on the acceleration board. It reduced the minimum share price for listing to 50 rupiah ($0.0036) apiece compared to 100 rupiah ($0.0071) on the main board.
IDX Incubator chief Irmawati Amran said there are at least 33 startups besides Pigijo in the bourse’s incubator programme that are likely to proceed to a listing.
Startups eligible to list on the acceleration board should have at least raised seed or Series A funding from venture capital firms or angel investors.
“We want them to develop their business through acceleration board. After a while, if their business is doing good, they can move up to the development board, which is a special board for companies with minimum net tangible assets of 5 billion rupiah ($357,304),” Amran said.
The acceleration board will offer investors easy access to all details pertaining to a startup before making any investment or merger and acquisition decision, she added.