Kioson is the first tech startup in the country to be listed on the stock exchange, and the first to exit through IPO

Indonesian online-to-offline (O2O) e-commerce startup Kioson has officially started trading on the Indonesia Stock Exchange (IDX) today, making it the first tech startup in the country to go public.

Trading under the code of KIOS, the startup raised IDR45 billion (US$3.3 million) during the initial offering period of September 26-28.

Selling at IDR300 (US$0.02) per shares, the company issued 150 million shares or equal to 23.07 per cent of the company’s total shares.

It was oversubscribed by ten times the offered number and the majority of the investors come from the retail sector.

As previously announced, Kioson plans to use the new funding to acquire PT Narindo Solusi Komunikasi, a bank switching and modern retail company.

In a press conference, Kioson Managing Director Jasin Halim stated that the acquisition process will begin next week.

Listed under the Trade Service & Investment sector and Retail Trade subsector, Kioson is the 24th company to get listed on the IDX this year, and the 558th of total issuer listed on the stock exchange.

The startup aims to achieve profitability within two years.

Also Read: M Cash to kick off IPO in November, the second Indonesian tech startup to do so

“There are indeed many challenges [to achieve profitability] within two years; we also see that there are many [competitors] entering the market with strong funding, and we see that as an excellent way to educate the market,” Halim explained.

“Because in this business sector, the most challenging part is educating the market,” he added.

To support its path towards profitability, Kioson aims to grow the number of kiosks that it partners with to 30,000 at the end of year. That number would be a 400 per cent growth compared to last year.

The Kioson platform works with offline agents, in the form of kiosks or mom-and-pop stores, to help underserved communities perform e-commerce transactions.

The startup is seen as a direct competitor to Kudo, which had been acquired by ride-hailing giant Grab as part of its plan to push for its expansion to the fintech sector.

“It is true that raising funds from venture capital firms is a common practice among startups, and we have also done that, but since we have not managed to suitable partner, we see IPO as a breakthrough channel,” Halim said.

“This will also provide opportunity for retail investors to participate in capital market for startups,” he added.

Prior to the IPO, Kioson raised a US$450,000 funding round from Mitra Komunikasi Nusantara in June.

The startup listed PT Sinarmas Sekuritas as lead underwriter.

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