Digital Kiosk M Cash "Go Public" Early November 2017, Release 25% New Shares

PT M Cash Integration (MCI), a digital kiosk provider, said it would soon be listed on the Indonesia Stock Exchange. It is planned that the corporate action will take place in early November 2017 by releasing 25% new shares to the public. M Cash will be the second tech startup to go public after kiosk.

"This year there are two startup companies that have taken the floor, Kioson and M Cash. Kioson has [public exposure], following M Cash. Considering that IPO rules for startups do not yet exist, so both of them will listed by referring to the old rules and registered with the retail business sector," explained Samsul Hidayat, Director of Corporate Appraisal of the Indonesia Stock Exchange, Monday (11/9).

Samsul continued that these two companies are listed as retail companies because their business is a provider of retail transaction facilities in digital form. The goods sold are more directed to people's daily needs, such as credit, electricity tokens, and others.

They are not classified as technology companies because of the determination of their line of business on the stock exchange, when referring to the current regulations, in terms of their largest source of income.

"Well, their biggest income comes from the retail sector. So far, M Cash has completed the listing agreement with us, approximately 40% of the process has been completed. review again."

Separately, when contacted DailySocial, Managing Director of Kresna Graha Investama Suryandy Jahja confirmed Samsul's statement. The IPO plan for M Cash continues as originally planned, it will be listed on the IDX in early November 2017.

Krishna Graha is a shareholder in M ​​Cash with 17,6% share ownership.

He revealed that currently M Cash is preparing the initial offering stage (bookbuilding). 25% of new shares will be released, with a target of IDR 300 billion in funds, more than the initial prediction of IDR 250 billion. However, the share price of M Cash per share is still kept secret.

According to Suryandy, the use of the proceeds from the IPO will be used for working capital of around 60 percent, 30 percent for capital expenditure, and the rest for other needs.

"The plan is still the same as before, nothing has changed. IPO in early November and pubex (public expose) early October. Now again anchors book building, said Suryandi.

In terms of financial condition, he continued, it was claimed that M Cash was classified as a healthy company and had made a profit. However, Suryandy did not mention the amount.

"It's already profitable, it should have been [after the IPO] big growth [profit growth] going forward."

M Cash has the main product digital kiosk which has been developed independently since 2010. The machine can be used by users to transact digital products, such as credit, concert tickets, electricity tokens, and pay bills. Users can also buy SIM cards and electronic money.

The temporary M Cash digital kiosk can be found at several Fresh Market and Ranch Market outlets located in Jakarta and Bekasi. In the future, this device will be available in Hero, Hypermart, and several local minimarket retail brands. It is targeted that by the end of the year they can place 1.000 kiosk outlets throughout Indonesia.