E-commerce company Kioson Komersial Indonesia became the nation's first e-commerce startup to go public on the Indonesia Stock Exchange on Thursday (05/10). There was plenty of interest for the company during its trading debut as its shares rose 50 percent to IDR 450 a piece. The offering was more than 10 times oversubscribed. Local brokerage Sinarmas Sekuritas was the sole underwriter for the IPO.
Kioson Komersial Indonesia's business model is an "online to offline" one, meaning that customers can purchase goods online through the firm's shopping app on mobile devices and pick these items up at the small local kiosks (known as warung) across the nation. The company cooperates with about 19,000 warungs and plans to have raised this figure up to 100,000 by the year 2019. Kioson Komersial Indonesia carries out the transaction using money deposited by the warung owners.
Through the initial public offering (IPO), Kioson Komersial Indonesia generated IDR 45 billion (approx. USD $3.4 million) by selling 150 million shares, equivalent to 23.1 percent of the company's total share capital, for a price of IDR 300 per share. Part of the proceeds will be used to acquire Indonesian online vouchers company Narindo Solusi Komunikasi, an affiliated technology company.
This successful IPO of Kioson Komersial Indonesia should pave the way for other tech companies in Indonesia to decide to opt for an IPO as an alternative funding method. The online businesses of Indonesia are regarded to have great potential as Indonesia's young (and big) population is increasingly adapting to an "online life style", supported by rapidly rising Internet and smartphone penetration in Southeast Asia's largest economy.
Therefore, it is no coincidence that China's e-commerce giant Alibaba Group recently invested in big e-commerce players - including Tokopedia and Lazada - that are active in Indonesia. However, small e-commerce players now struggle to compete with those counterparts that see big capital injections from big investors.
Jasin Halim, Chief Executive of Kioson Komersial Indonesia, said the company decided to opt for an IPO due to a difference in valuation rather than accepting offers from venture capital and private equity funds. Moreover, transparency and corporate management should improve after becoming a listed company.
Meanwhile, Tito Sulistio, President Director of Indonesia Stock Exchange, urges other tech companies to follow Kioson Komersial Indonesia's example by listing on the local bourse. In fact, the Indonesia Stock Exchange considers to set up a listing board dedicated to technology firms.
In 2016, Indonesia's Financial Services Authority (OJK) issued a new regulation that allows start-up companies to raise up to USD $74.6 million from an IPO. Therefore, it is hoped that the big e-commerce companies in Indonesia, such as Tokopedia and Bukalapak, also opt for a listing on the Indonesia Stock Exchange.
Kioson Komersial Indonesia became the 24th company to list on the Indonesia Stock Exchange in 2017.
Last Update: 15 Dec 2017
IPOs on the Indonesia Stock Exchange up to 5 October 2017
|Company||P: 15 Dec 2017||P: 14 Dec 2017||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|Forza Land IndonesiaFORZ||770||770||0.00%||N/A||0.00%||86.89%|
|Industri dan Perdagangan Bintraco DharmaCARS||1,140||1,160||-1.72%||N/A||0.00%||-34.48%|
|Nusantara Pelabuhan HandalPORT||370||390||-5.13%||N/A||0.00%||-35.65%|
|Pelayaran Tamarin SamudraTAMU||2,850||2,850||0.00%||N/A||0.00%||1,030.95%|
|Cahayasakti Investindo SuksesCSIS||800||800||0.00%||N/A||0.00%||42.86%|
|Terregra Asia EnergyTGRA||520||520||0.00%||N/A||0.00%||52.94%|
|First Indo American Leasing Tbk.FINN||121||127||-4.72%||N/A||0.00%||-32.02%|
|Alfa Energi Investama Tbk.FIRE||1,435||1,340||7.09%||N/A||0.00%||91.33%|
|Totalindo Eka Persada Tbk.TOPS||3,230||3,230||0.00%||N/A||0.00%||596.12%|
|Kirana Megatara Tbk.KMTR||482||480||0.42%||N/A||0.00%||-29.64%|
|Hartadinata Abadi Tbk.HRTA||294||300||-2.00%||N/A||0.00%||-11.45%|
|MAP Boga Adiperkasa Tbk.MAPB||1,850||1,900||-2.63%||N/A||0.00%||-26.59%|
|Armidian Karyatama Tbk.ARMY||165||165||0.00%||N/A||0.00%||-63.33%|
|Buyung Poetra Sembada Tbk.HOKI||350||350||0.00%||N/A||0.00%||2.34%|
|Marga Abhinaya Abadi Tbk.MABA||2,090||1,900||10.00%||N/A||0.00%||1,000.00%|
|Megapower Makmur Tbk.MPOW||300||288||4.17%||N/A||0.00%||-11.76%|
|Mark Dynamics Indonesia Tbk.MARK||1,585||1,590||-0.31%||N/A||0.00%||323.80%|
|Ayana Land International Tbk.NASA||398||398||0.00%||N/A||0.00%||127.43%|
|Emdeki Utama Tbk.MDKI||280||274||2.19%||N/A||0.00%||-51.72%|
|Trisula Textile IndustriesBELL||208||206||0.97%||N/A||0.00%||16.20%|
|Kioson Komersial IndonesiaKIOS||2,960||2,960||0.00%||N/A||0.00%||557.78%|
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available