M Cash will use the IPO to fund the completion of its distribution channels and the deepening of its market penetration

Indonesian e-commerce startup M Cash Integrasi (MCI) on Friday hosted a public expose event when the company revealed details of its plan to list on the Indonesia Stock Exchange (IDX) on October 31.

M Cash will be the second Indonesian startup to list on the stock exchange, following Kioson who had begun trading on October 5.

The company will offer up to 216,983,300 new shares or the equivalent of 25 per cent of its paid-up capital in the initial public offering (IPO). The price will range from IDR1,300 (US$0.09) to IDR1,450 (US$0.10).

As a comparison, on the first day of trading, Kioson’s stock price was at IDR450 (US$0.03) during closing.

M Cash operates digital kiosks with the capability to generate a variety of physical cards, including mobile SIM and e-money, with automatic registration. The digital kiosks also has other features such as phone credit top up, utility payment, mall/mart directory, advertisements (co-branding), vouchers and promotions, flash sales points, and e-commerce transactions.

The company’s goal for the IPO is to become a “digital distribution champion” in the country, which it aims to reach by completing distribution channels and deepening market penetration, according to President Director Martin Suhalie in a press statement.

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Managing Director Jahja Suryandy stated that the company is in a “very healthy financial condition” with IDR45 billion (US$3.3 million) net cash as of April 30.

“Sales managed to grow 30.8 per cent CAGR2Y to IDR386.4 billion (US$28.6 million) in 2016, from IDR225.7 billion (US$16.7 million) in 2014, and by +152.6 per cent YoY to IDR269.3 billion (US$19.9 million) in 4M17, from IDR106.6 billion (US$7.8 million) in 4M16,” he explained.

“Meanwhile, net profit leaped by 210.1 per cent CAGR2Y to IDR2.8 billion (US$207,000) in 2016, from IDR287.3 million (US$21,000) in 2014, and by +289.5 per cent YoY to IDR3.2 billion (US$237,000) in 4M17, from IDR816.0 million (US$60,000) in 4M16,” he added.

M Cash aims to grow its revenue and profit in the years ahead by targetting 1,000 kiosks in 2017 and 10,000 kiosks in 2010.

It has appointed PT Kresna Sekuritas and PT Trimegah Sekuritas Indonesia Tbk as lead underwriters of the IPO.

DailySocial reported that Indonesia’s finance minister Sri Mulyani has promised to “make it easier” for startups to go public on IDX, as an option to raise funding. She stated that the government, financial services authority (OJK), and IDX are currently in talks to determine which part of the regulation can be eased up for startups.

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