Telefast Becomes the Latest Startup to Choose IPO as a Funding Path

Another digital company has been listed on the stock exchange. This time the culprit is PT Telefast Indonesia Tbk (TFIN) which is a subsidiary of PT MCash Integration Tbk (MCAS).

Telefast becomes next startup who do listing to the Indonesia Stock Exchange (IDX). This startup, which acts as a solution provider for human resource management and development, is the third startup from the Kresna Graha Investama group.

President Director Telefast Jody Hedrian said that his party is targeting to offer 414.666.500 new shares, equivalent to 25 percent of the paid-up capital. The share price offered in the initial public offering (IPO) will be around Rp. 170-Rp. 210 per share.

Telefast itself has a number of digital products and services in the form of HRKU employee service applications, companies outsourcing Emitama Wahana Mandiri (EWM), and the employee recruitment application for the Work Office. In addition, Telefast still maintains their initial business as a sales agent for telecommunication products for the needs of pulse outlets.

This HR management business is relatively new to Telefast. They acquired Bilik Kerja in December 2018, operated HRKU in March 2019, and acquired EWM in April 2019. However, Jody believes that the product is more practical for consumers because their services are interrelated and integrated. He claims it is not owned by their competitors who he says have separate services.

"Not all HR company have an integrated solution like ours. We can provide this integrated solution in full or just what they need," said Jody in Telefast's public expose.

According to Jody, the IPO step they took was not merely to raise capital. There are a number of advantages that he calls more helpful than through other funding channels.

Jody said one benefits to be gained from IPO is regulatory oversight. He believes that strict supervision from the regulator will actually help the management of the company to be more orderly and orderly.

"On the one hand we also get guideline, how to manage the company properly and correctly," added Jody.

The total funds that Telefast wants to reach through the IPO are around Rp. 70,5 billion - Rp. 87 billion. Of this total, Telefast plans to use around 70 percent for working capital, 25 percent for capital expenditures, and 5 percent for investment in their human resources. The working capital is divided to finance their business in the field of HR management and distribution of credit vouchers.

In the company structure, MCash controls 58,58 percent of Telefast's shares, Diva's 7,56 percent, and Telefast Investama Indonesia 33,84 percent.

The timeline for Telefast's IPO plan starts from book building period from August 21 - August 28 and official listing on the IDX on September 16, 2019.