Cashlez Officially IPO, Open Opportunities for Acquisition of Other Companies

Startups payment gateway and mPOS Cashlez was officially listed on the Indonesia Stock Exchange, yesterday (4/5) with the stock code "CASH". Cashlez is listed at acceleration board, as well as being the 27th company listed on the stock exchange this year.

The company released 250 million new shares at a price of Rp350 per share. This amount of capital covers approximately 17,5 percent of the paid-up and placed capital in Cashlez. Simultaneously, the company issued Series I Warrants at a ratio of 1:1.

President Director of Cashlez Tee Teddy Setiawan said that the company managed to raise Rp 87,5 billion in funds from this celebration. As planned, 61,31% of the funds were used for the acquisition of PT Softorb Technology Indonesia (STI), the remaining 38,69% for working capital.

"Through this IPO, we can continue to innovate in developing our business and one of them is the acquisition of STI which we think is very strategic for our business growth," he said in an official statement.

Quoting from his interview with IDX Channel, Teddy said that apart from the acquisition of STI, he also opened up the possibility to take other corporate actions. "We're still looking for Opportunity for the acquisition of similar companies to support growth inorganic."

He continued, process due diligence for the acquisition of STI has started since last year. Both parties began to open talks for future business synergies, given the huge potential of the payment system industry in Indonesia.

Entering the second half of last year, the company began to open options for listing on the stock exchange, especially the company itself entered as a participant in the IDX Incubator. "We in-encouragement to dare to take the floor on the stock exchange, especially now that there is a new board [acceleration board], we finally decided to enter the stock exchange.”

Fundamentally, STI has a strong and stable business base, compared to Cashlez, which is included in the startup category. STI focus on front-end, while Cashlez focuses on Back-end. They need front-end which can create innovations, for example incorporating sensors for non-cash payment instruments such as cards.

"Now we are starting to enter the [payment] segment for transportation, prepaid cards, parking, and theme parks," he continued.

It is claimed that Cashlez currently has captured more than 7.300 merchants consisting of small, medium and large businesses enterprise. However, 88% of them are dominated by SMEs.

Target misses the plan

Although the use of funds is in accordance with first plan, actually the nominal target of the funds that Cashlez was after was missed. Initially, the company was eyeing funds of between Rp. 90 billion and Rp. 100 billion by releasing 300 million shares of common stock. The offer price is in the range of Rp298-Rp358 per share. The date for listing shares on the IDX was originally planned for April 20, 2020.

Teddy revealed that the shift in the recording date was due to changes in structure. At the beginning of this year, Jiwasraya started with a bad issue, then in March the Covid-19 pandemic emerged. In the end, it had an impact on several potential investors who had initially stated their commitment to enter, eventually changing their minds.

"But now it's all over back to normal, this timing good to start again.”

In addition, regarding the company's target this year, Teddy admitted that he had not made any revisions. However, he opens the possibility that in the second quarter of this year there will be a correction. It is targeted that Cashlez's business as a whole can increase between 2,5 to 3 times from last year.

“In March 2020 our performance was still positive. The effect of Covid-19 on our business, related to PSBB, practically all businesses have fallen by 80%. We have to be more creativecater transactions to online.”