Indonesian digital kiosk startup M Cash aims to release 25 per cent of new shares, with the goal to raise IDR300 billion (US$22 million)

Director of Company Review at Indonesia Stock Exchange (IDX) Samsul Hidayat announced today that Indonesian e-commerce  startup M Cash Integrasi is set for an initial public offering (IPO) at the stock exchange in November, becoming the second startup in the country to do so, according to several media reports.

“This year we have two startups set for a listing [at IDX], Kioson and M Cash. Kioson has already done [their public expose], with M Cash to follow suit. Since there is yet to be any regulation for a startup’s IPO, the two companies will be listed based on existing regulations, and they will be listed as companies in retail business sector,” Hidayat said.

Founded in 2010, M Cash offers digital kiosk services that enable users to do transactions for various digital products, such as mobile credits, concert tickets, or pre-paid electricity token. It also enable users to buy SIM cards, pay bills, and top-up e-money services.

M Cash’s digital kiosks are now available in various locations of Fresh Market and Ranch Market supermarket chain in Jakarta and Bekasi.

Hidayat further explained that M Cash will be listed as a retail company (instead of a tech company) based on its primary source of income, as dictated by IDX through its regulations.

He also explained that the process for the listing is “about 40 per cent [complete].”

“We just need to do another review process,” he explained.

Also Read: Indonesian O2O e-commerce startup Kioson to announce IPO

M Cash investor Kresna Graha Investama confirmed the statement to DailySocial, with a public expose set to be held in early October.

The company’s plan for IPO first surfaced in May, but as November closes in, it is finally able to reveal the progress.

Kresna Graha Investama Managing Director Suryandy Jahja explained that M Cash has been preparing for book building.

It plans to issue as many as 25 per cent of new stakes in the company, with the target to raise IDR300 billion (US$22 million), higher than the initially predicted number of IDR250 billion (US$18 million).

The price for each share was undisclosed.

Jahja also stated that the company plans to use 60 per cent of the newly raised funding as working capital, 30 per cent as capital expenditure, and the rest for other necessities.

Though he declined to share further details, Jahja claimed that M Cash is already profitable as a business.

“After the IPO, it should be able to reach big growth in the future,” he said.

Kresna Graha Investama owns 17.6 per cent of shares in the startup.

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