M Cash Integrasi set to list on Indonesian Stock Exchange

• Aims to raise US$23 million through the listing exercise
• Funds will be used for capital expenditure and market penetration

INDONESIAN startup M Cash Integrasi (MCI) will list on the Indonesia Stock Exchange (IDX) on Oct 31, 2017.

The IPO will involve about 217 million new shares which is equivalent to 25% of the company’s paid-up capital. The share price will range from 1,300 rupiah (US$0.10) to 1,450 rupiah (US$0.11) per share. The IPO has been oversubscribed by 7.2 times.

MCI aims to raise up to 314 billion rupiah (US$23 million) that will be used for capital expenditure and market penetration.

MCI has appointed PT Kresna Sekuritas and PT Trimegah Sekuritas Indonesia Tbk as lead underwriters.

“Through the IPO, we will get bigger funding access and become more transparent in doing business, because will be measured every three months,” MCI managing director Jahja Suryandy told Digital News Asia (DNA).

Jahja says that they have succeeded in attracting institutional investors from the United Kingdom, United States, Hong Kong, Australia, and Singapore.

MCI says it is a revolutionary digital kiosk in Indonesia, with the capacity to generate a variety of physical cards, including mobile SIM (Subscriber Identity Module) and e-money, with automatic registration.

In addition, it features other selections, such as phone credit top up, utility payment, mall/mart directory, advertisements (co-branding), vouchers and promotions, flash sales points, e-commerce transactions and other digital products.

Targeting to deploy over than 1,000 kiosks in 2017 and 10,000 kiosks by 2020, MCI is aiming to robustly grow its revenue and profit in the years ahead.

Jahja also says that, “The company is in a very healthy financial position, recording 45 billion rupiah (US$3.31 million) in net cash as of April 2017. (1 million rupiah = US$73.51)

"Net profit rose 289.5% year-on-year to 3.2 billion rupiah in the first four months of 2017, from 816 million rupiah in the previous corresponding period.”

MCI focuses on deploying physical kiosks rather than mobile apps because of the vast unbanked population in Indonesia.

“We want complete distribution channels, thus deepening the market penetration of our digital products, from online to offline channels, and from modern to traditional and grass-root channels, making them available anytime and anywhere to our customers, especially to millennials and the unbanked,” said MCI president director Martin Suharlie.

MCI will become the second local technology startup to list on the bourse after Kioson.

Related stories:

Kioson to be first local startup to list on Indonesian Stock Exchange

Kioson IPO raises US$3.4mil

E-commerce player Bhinneka aims for IPO in 2018

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