Indonesia's first ever IPO by a startup draws robust investor interest

JAKARTA (Reuters) – E-commerce firm PT Kioson Komersial Indonesia Tbk drew strong investor interest for Indonesia’s first ever IPO by a startup, and its shares surged on their trading debut in very thin volumes on Thursday.

The response to the IPO could potentially pave the way for more technology companies in Southeast Asia’s biggest economy to follow in Kioson’s footsteps and list in the domestic stock market.

Kioson raised 45 billion rupiah ($ 3.3 million) by selling 150 million shares, or 23.1 percent of the company’s total share base, at 300 rupiah each. The offering was more than 10 times over-subscribed.

The stock surged as much as 50 percent on its debut, but volumes were very thin with just over 10,000 shares traded.

Indonesia’s startup scene is booming as investors are lured by the youthful demographic of the country of 250 million people, who are increasingly buying anything from tickets to electronic gadgets online.

President Joko Widodo has also aimed to increase broadband access in the sprawling archipelago.

Kioson CEO Jasin Halim said the company previously received offers from venture capital and private equity funds, but decided to go for an IPO because of a difference in valuation.

“The path that startups take is normally to look for venture capital, angel investors and so on…We feel that by taking the IPO route, that’s the method that is the most fair and transparent,” he told reporters. “Let the market value our company.”

On top of showing that an IPO could be an alternative method to raise funds for startups in Indonesia, Kioson also offers retail investors a chance to take part in the capital market and benefit from the “hyper-growth” of startups, Halim said.

Kioson operates an “online to offline” business model, which allows customers to make online purchases and pick up their orders at the ubiquitous kiosks, locally known as “warungs”, across Indonesia.

The company had tied up with 19,000 kiosks as of September, and plans to raise that to 100,000 by 2019, Halim said.

Kioson plans to use the proceeds from its IPO mainly to acquire online vouchers firm PT Narindo Solusi Komunikasi.

Andi Boediman, co-founder of venture capital firm Ideosource, told Reuters he expects more startups to take the IPO route in Indonesia as they could get better valuations from local investors who are more familiar with their products.

“With products that are offered in Indonesia, it’s easier to build a positive perception in Indonesia than to introduce it in other countries,” said Boediman, whose venture capital firm had invested in online retailer PT Bhinneka Mentari Dimensi. (reut.rs/2yJnoHQ)

PT M Cash Integrasi, which distributes online vouchers through its physical kiosks, is also planning to raise up to 300 billion rupiah by offering a 25 percent stake in an IPO. M Cash is a unit of PT Kresna Graha Investama Tbk.

Reporting by Eveline Danubrata; Additional reporting by Cindy Silviana; Editing by Muralikumar Anantharaman

Our Standards:The Thomson Reuters Trust Principles.

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VMware scoops up hot email startup Boxer

While VMware parent company EMC has generated plenty of attention with its massive $ 67 billion merger with Dell, VMware itself has made a deal of its own with the purchase of email and task management startup Boxer.

The acquisition, announced today at the company’s annual european VMworld event, is part of VMware’s strategy to provide apps for use with its data management platform. A hit with those running Cyanogen, Boxer initially started as a consumer-facing mobile email app that makes it easier for people to quickly sift through a backlog of messages, and speeding up the process of creating and assigning tasks. It later expanded its focus to enterprise-level customers, adding better security along with it.

Now, that might not seem like a big deal, but it is when you consider the range of popular cloud-based services Boxer integrates with (Box, Dropbox, Evernote, Facebook, Gmail, iCloud, Salesforce, Twitter, Outlook, Yahoo, etc.). And businesses whose employees use these services on the job can be more confident that company data is secure.

The Boxer team will join the company’s Airwatch unit, working towards launching a suite of secure apps for the enterprise, according to VMware CTO Noah Wasmer, who called Boxer a “consumer-grade” enterprise app.

“For business users, the most mission critical application is email, followed quickly by content and business apps that contain the data, insights, and information to master their job,” said Wasmer in a company blog post today. “We all love the native email experience across iOS and Android devices but what if they were optimized for businesses with the security and control that they require? This is why we are doubling down with the planned acquisition of Boxer, Inc.”

Financial terms of the acquisition deal were not disclosed. Austin-based Boxer previously raised $ 3 million in funding.

VMware scoops up hot email startup Boxer originally published by Gigaom, © copyright 2015.

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