Kioson will use the IPO as an opportunity to push for sustainable growth, an it will acquire PT Narindo Solusi Komunikasi
Indonesian O2O e-commerce startup Kioson hosted a public event on Thursday to reveal more details for its IPO at the Indonesian Stock Exchange (IDX).
The Jakarta-based startup will be the first Indonesian tech startup to go public at the stock exchange.
Kioson stated that it will offer “as many as” 150 million shares or at least 23.07 per cent of total issued capital (not 23.08 per cent previously reported).
With prices ranging from IDR280 (US$0.021) to IDR300 (US$0.022) per share, Kioson aims to raise between IDR42 billion (US$3.1 million) and IDR45 billion (US$3.3 million).
The company also plans to offer 150 million Series I Warrant attached to its new shares or as many as 30 per cent of total issued shares, which will be given as an incentive for shareholders.
It has appointed PT Sinarmas Sekuritas as underwriter.
As for what the planned use for the raised capital, Kioson is reportedly planning to acquire an affiliated tech company.
The company confirmed that it will acquire bank switching and modern retail company PT Narindo Solusi Komunikasi using 75.76 per cent of the funds raised through the IPO. It will use the remaining funds as working capital.
In terms of performance, based on its financial report per April 30, Kioson’s turnover has reached IDR25.9 billion (US$1.9 million) with a total asset of IDR44.77 billion (US$3.3 million), a 25.29 per cent increase compared to its assets as of December 2016.
Serving the under-served
According to data from the Ministry of Communications and Informatics, of the 93.4 million internet users in Indonesia, only 8.7 million have actively used the platform to shop online. The number of internet users in tier-two cities or rural areas have only reached 17.3 per cent.
“The IPO plan is part of our strategy in carrying out the mission of becoming a bridge between the under-served market and the digital technology. We see that there remains a widely under-served market by the digital industry,” Kioson co-founder Jasin Halim said.
“There are three main points that hamper them from receiving service: Payments, logistics, and trust in e-commerce services. As an O2O platform, Kioson presents a solution to the challenges,” he added.
Kioson works by giving under-served communities in rural Indonesia access to fintech and e-commerce services through the use of individual partners, usually owners of “warung” or typical mom-and-pop stores, which are widely available in every Indonesian cities and villages.
Using cash as a payment method, users can pay bills and shop on online marketplaces through the assistance of Kioson partners.
Similar concept is being applied by another Indonesia-based startup Kudo, which had been acquired by Southeast Asian ride-hailing giant Grab.
By April 2017, Kioson claimed to have secured “more than” 15,000 partners in 384 cities in the country, with the majority based in tier-two cities. The company aims to increase the number of partner by 100 per cent at the end of 2017.
Image Credit: Kioson
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