M Cash subsidiary NFC Indonesia to raise US$24 million IPO in July

Mon Jun 11, 2018 - 9:25am UTC

11/6/2018 – Indonesia digital exchange platform NFC Indonesia on Friday has announced plans for an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) board to raise up to US$24 million.

The IPO will offer up to 166.67 million new shares (equivalent to 25 percent of its paid-up capital) at an IPO price ranging between IDR 1,500 (US$0.10) and IDR 2000 (US$0.14) per share.

The initial offer period for the IPO will start from June 8 and expire on June 21, 2018, with priority given to local investors, although the offer is opened to both local and foreign investors.

NFC explained that the IPO is an innate strategy to accelerate its business to be the biggest digital exchange hub in Indonesia. The company aims to play a central role in the daily lives of a tech-savvy Indonesian society.

To achieve that, NFC will use 60 percent of the IPO funding for working capital, 30 percent for various digital investment such as IT development, and the remaining for talent acquisition.

Dubbing itself as a digital exchange platform, NFC Indonesia currently operates two different services. The first where it integrates a real-time phone credit marketplace for its digital exchange business, and the second where it works through its subsidiary PT Oona Media Indonesia to offer OONA TV, a free TV and video entertainment application.

The company also cited plans to expand into other forms of digital exchanges in the near future.

NFC Indonesia Chairman Suryandy Jahja said, “as the most innovative digital exchange to go public, we believe this is just a start with many more innovations in the pipeline including Digital Advertising Exchange and Communication Platform Exchange.”

NFC Indonesia is a subsidiary of MCash Integrasi, which in October last year became the second startup to list on the IDX. Its US$22 million IPO was reportedly oversubscribed by 10.69 times.

NFC Indonesia has appointed PT Kresna Sekuritas, PT Trimegah Sekuritas Indonesia Tbk, and PT Sinarmas Sekuritas as underwriters for the IPO. Initial listing on the IDX will be conducted in July 2018.

In related news, MCash backer Kresna Graha Investama have mentioned plans for five of its portfolio companies to go public in Indonesia and New York this year.

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