- Turns to the IPO route for funds instead of relying on venture capital
- About 75.76% of the funds will be use to acquire PT Narindo Solusi Komunikasi
INDONESIAN e-commerce online-to-offline (O2O) startup PT Kioson Komersial Indonesia Tbk (Kioson) is scheduled to list on the Indonesia Stock Exchange on Oct 3, 2017.
Founded in 2015, Kioson is an O2O startup that integrates online and offline merchants (especially the underserved market) through partnerships.
Kioson will be the first local startup to be listed on the Indonesia Stock Exchange.
"An IPO can become an alternative way to get funding and a startup does not have to rely on venture capital (VC),” Kioson co-founder Jasin Halim explains.
Through this IPO, Kioson will sell 150 million shares or 23.07% of the total equity at 280 rupiah (US$0.021) per share. Kioson has appointed PT Sinar Mas Sekuritas as underwriter.
Kioson aims to raise 42 billion rupiah (US$3.15 million) to 45 billion rupiah (US$3.37 million) from the exercise.
Approximately 75.76% of the funds raised will be used to acquire PT Monjes Investama's 99.34% stake in PT Narindo Solusi Komunikasi (Narindo), a digital product distributor. The acquisition value is estimated at 30 billion rupiah (US$2.25 million).
The rest of the funds will be used for operational purposes.
Jasin says that acquiring the right companies will help them to reach their target revenue of up to two trillion rupiah (US$150 million) by 2018.
“Narindo's revenue for April 2017 reached 400 billion rupiah (US$30 million). Narindo will contribute between 80% to 90% of our total revenue. We are sure that this acquisition will help us to increase our bottom line,” he explains.
Based on its performance, Kioson's revenue hit 25.9 billion rupiah (US$1.9 million) in April 2017 with a loss of 4.45 billion rupiah (US$330,000).
Kioson focuses on digital services and Payment Point Online Bank (PPOB) financial services, and eCommerce services.
Kioson has 19,000 kiosk partners across 384 cities in Indonesia and targets to increase this to 30,000 kiosks by the end of 2017.
“We will receive enough funding from the IPO to accelerate the expansion of our business,” says Jasin.
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