Shares of travel planning platform Tourindo Guide Indonesia, also known as Pigijo, soared in public trading debut on Wednesday, becoming the first startup to list on the new SME-focused board of the Indonesia Stock Exchange (IDX).
Pigijo, which traded under the stock ticker PGJO, sold 150 million new shares, equivalent to 48.98 per cent in an initial public offering last year, reaping 12 billion rupiah ($860,966) in fresh proceeds.
Shares of Pigijo closed at 88 rupiah per share ($0.0063), 10 per cent higher than its IPO price. It appointed a brokerage firm Fajar Surya Sekuritas as its underwriter for the IPO.
Established in 2017, Pigijo is one of 69 startups participating in an IDX incubator programme. The startup offers a marketplace for tourism-related services and products. It also enables travelers to find and determine their own itinerary for the trip.
Pigijo CEO Claudia Ingkiriwang told reporters that the proceeds will be used to fund its working capital needs, including marketing and promotion, rental fees, and operational costs.
Throughout this year, Pigijo targets to handle 180,000 transactions through its platform.
“This year, we will focus to develop a business as we are on track to gain profit in six years after our IPO debut,” Ingkiriwang said on the sidelines of the trading debut.
Aside from making a profit, she also expects to move up to development board – a special board for companies with minimum net tangible assets of 5 billion rupiah ($357,304) – in the coming years.
The startup booked Rp 36.18 billion ($2.6 million) in net revenue, but it also recorded a net loss of Rp 1.75 billion ($125,557).
Proposal to ease listing regulation on cards
The Financial Services Authority (OJK) said in a workshop at IDX that the board is now formulating a regulation for listed startups.
OJK plans to relax rules related to listed startups managing their funding and periodic submission of reports to the authority.
“Currently, listed startups still have the same obligation on the bourse as their large corporation peers. I don’t think it’s fair for startups,” OJK stock exchange supervision deputy Djustini Septiana said, adding that the regulation also will set similar protection to both startup and corporation investors.
IDX has been stepping up efforts to support SMEs and startups to list on the bourse. Through the IDX’s acceleration board, SMEs enjoy a cheaper listing fee of around $1,786 (the listing fee for mainboard is up to $17,803) and 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.
Startups who are eligible to list on the acceleration board should have at least previously raised seed or Series A funding from venture capital firms or angel investors.