Kioson IPO oversubscribed by over 10 times

Kioson Komersial Indonesia, the first online-to-offline (O2O) Indonesian e-commerce company, has officially listed on the Indonesia Stock Exchange (IDX) under the ticker code KIOS. It is the first startup to list on the IDX, the company said. Kioson services include digital services and payment point online bank (PPOB), financial services, and e-commerce services.

Kioson stock was set at Rp300 per share and managed to secure up to Rp45 billion in funds. During the public offering period, Kioson recorded an oversubscription more than 10 times of the total number of shares offered.

Kioson President Director Jasin Halim said the initial public offering (IPO) is significant for the Indonesian capital market, as for the first time, retail investors can place their funds in a technology startup. Jasin also added, "This IPO is part of our strategy to bridge the digital gap for the underserved market and boost the penetration of digital services to second tier cities in Indonesia."

The digital gap among Indonesia's population of 250 million people is wide. Based on 2015 Indonesian Ministry of Information and Communication data, only 8.7 million people actively shop online, from a total of 93.4 million Internet users. Jasin named three key obstacles preventing the underserved market from shopping online: payment; logistics; and trust towards e-commerce. "Kioson is an O2O platform that addresses those issues to make everyone transact online," said Jasin.

From the total funds raised through the IPO, as much as 78.95% will be used by Kioson to acquire PT Narindo Solusi Komunikasi. "This acquisition will strengthen our infrastructure through the assets owned by Narindo. Narindo that focuses on the e-voucher aggregator business will maintain the company's business from upstream, so we expect to support the Kioson bottom line," said Kioson Finance Director Setiawan Parikesit.

Kioson has signed up more than 19,000 kiosk partners within 384 cities in Indonesia as of September 2017, and aims to raise the number of kiosk partners to 30,000 by the end of 2017.