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Kioson, the first Indonesian start-up listed on the IDX

posted onOctober 9, 2017
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E-commerce start-up Kioson became the first local tech firm to list on the Indonesian Stock Exchange (IDX), drawing strong investor interest. Kioson raised US$3.3 million from selling 150 million shares, or 23.1 percent of the company’s total share base. The offering was more than 10 times over-subscribed, meaning there was more investor demand than could be met. The share price surged as much as 50 percent from US$0.02 to US$0.04 on the first trading day, but volumes were very thin with just over 10,000 shares traded.

The Jakarta-based start-up was founded in 2015 by Viperi Limiardi, Jasin Halim and Roby Tan. Kioson is an online-to-offline ecommerce service, running a network of small shops where you can buy things online and pay bills through agents. It targets consumers without access to cashless payments.Currently, Kioson has 19,000 kiosk partners across 384 cities in Indonesia and expects to see the number grow to 30,000 by the end of the year.

In terms of performance, based on its latest financial report, its total revenue in 2016 was roughly US$1.9 million. Like many Indonesian startups, Kioson still suffers losses in profit – reporting $330,000 in losses as on April 2017 but investors’ appetite remained high as optimism and interest over Indonesia’s tech and startup scene continue to grow. Jasin Halim, Kioson's CEO told reporters during the listing, the company previously received offers from venture capital and private equity funds, but decided to go for an IPO because of a difference in valuation.

Kioson

“The path that startups take is normally to look for venture capital, angel investors and so on...We feel that by taking the IPO route, that’s the method that is the most fair and transparent,”Reuters quoted him as saying. “Let the market value our company.”

The company will use the IPO as an opportunity to push for sustainable growth and will acquire bank switching and modern retail company PT Narindo Solusi Komunikasi. With the acquisition of Narindo, Kioson aims to break even in 2018.

More technology companies in Southeast Asia’s biggest economy could follow in Kioson’s footsteps and list in the domestic stock market. According to Digital News Asia, another Indonesia-based startup, Bhinneka Mentari Dimensi is also gearing up for an IPO by 2020. Kioson’s IPO was also supported by the Indonesian Stock Exchange itself, which has been trying to attract tech companies to list by launching an incubator earlier this year.

This makes Kioson the 24th listing on the Indonesian stock exchange this year of a total of 558 scheduled for this year. Kioson is listed under Trade Service and Investment sector and Retail Trade sub-sector.