RUN System IPO on IDX, Take Advantage of Momentum for Business Expansion and Continuity

One of Telkom Group's investment portfolios, PT Global Sukses Solusi Tbk (RUN System) plans to expand its business and seek funds through an initial public offering (IPO) in Acceleration Board. This SaaS platform providing ERP solutions targets to collect IDR 49,9 billion Rupiah from its corporate actions.

The company's business development in the past few years and the trust of various parties are believed to be one of the strong reasons for the IPO. With the current conditions, especially the impact of the pandemic that has changed many settings, including the urgency of digitizing business processes, companies are urging companies to find ways to survive and thrive. On the other hand, the IPO is said to help improve the company's performance.

Founder & CEO of RUN System Sony Rachmadi Purnomo said, "Since the beginning we have targeted an IPO in order to support business expansion and company sustainability. As a Startup, agility very helpful to grow and develop but can backfire if we do not focus on stakeholders and corporate governance. We chose the IPO method in order to maintain the momentum for business expansion and sustainability (GCG) at the same time."

In received release DailySocial, it is said that the company will sell a maximum of 196,8 million ordinary shares on behalf of which are all New Shares and issued from the Company's portfolio, with a nominal value of Rp. 4 per share. The number of shares represents a maximum of 20,01% of the total issued and paid-up capital of the Company after the Initial Public Offering. The share price offered to the public is Rp230-254 per share.

In addition, the company also holds an ESA (Employment Stock Allotment) Program by allocating shares of a maximum of 1% of the total number of shares offered or a maximum of 1.9 million shares.

RUN System has scheduled an initial offering period between 20-26 August 2021, with an estimated effective date of 31 August 2021. The IPO date for Run System is targeted between 2-6 September 2021, with an allotment date of 6 September. Meanwhile, the target for distributing electronic shares is September 7 and listing on September 8, 2021.

PT BRI Danarese and PT Mirae Sekuritas Indonesia are the parties that act as implementers of the guarantee for the shares of PT Global Sukses Solusi TBK issued.

The proceeds from the Initial Public Offering after deducting share issuance costs will be used as working capital (74%) including new project financing, overhead costs and operational costs. Approximately 11% will be allocated for acquisitions and market expansion and 10% for research and development. Meanwhile, 5% will be used for the company's capital expenditure, which includes work equipment and infrastructure.

ERP Market in Indonesia

According to a report published by Allied Market Research, the global ERP market was pegged at $39,34 billion in 2019 and is expected to reach $86,30 billion by 2027, recording a CAGR of 9,8% from 2020 to 2027.

In last interview with DailySocial, Sony revealed that the ERP industry opportunity in Indonesia is still very large, with around 10-20% of new companies taking advantage of the service for their business. This makes his team more optimistic about the development of this industry in the future.

The company, which since 2013 has focused on developing ERP solutions from upstream to downstream, has four types of products, namely Run System which is an ERP , Run Market that is enterprise intermediary platform, Run iProbe (HR enterprise solution system), and iKas is point of sale platform.

In a period of 8 years, RUN System has served around 50 companies in various business scales ranging from MSMEs, medium to large, which are engaged in the manufacturing, distribution, trade, and service sectors. Sony said that his team is working on the integration of ERP and the banking sector

The journey of RUN System with Telkom Group

In 2014, RUN System participated in the first batch of Indigo Incubator program held by Telkom. Seeing the potential that exists in this startup, Telkom then makes RUN System as one of the Distribution Partners of ERP solutions for all its customers in Indonesia.

In addition, this Yogyakarta-based startup also received support from MDI Ventures and its managed funds MDI-KB Centauri with a strong partnership with Telkom Indonesia as to market them before the IPO.

In 2020, a subsidiary of PT. Telekomunikasi Indonesia, Tbk (Telkom), PT Metra-Net signed a Shareholder Agreement with RUNSystem. At that time, this agreement had a vision, one of which was to monetize opportunities in the online industry.

As one of their first portfolios, MDI Ventures believes that Run System is a validation of their modern IPO thesis. Run System is said to have achieved profitability from day one and made the IPO their funding channel. This contrasts with the usual startup dogma, where they give up profits to drive growth and view IPOs as just a strategy exit.