Cashlez Startup Aims for IDR 87.5 Billion through IPO
One of the players in the digital payment industry, Cashlez has been officially listed on the Indonesia Stock Exchange (IDX) since Monday (4/27/2020) after receiving an effective statement from the Financial Services Authority (OJK) at the end of last week.
PT Sinarmas Sekuritas was appointed as the guarantor of the issuance of digital payment startup emissions, which was established in 2015. Cashlez will release 250 million units of shares to the public at an offering price of IDR 350 per share. If all is sold, Cashlez will pocket Rp.87.5 billion from public investors.
This startup also began its initial public offering (IPO) on the Indonesia Stock Exchange (IDX) on Monday (4/5). The share price registered with the CASH code rose to Rp380 per share on its first day.
Cashlez is the 27th company that listed on IDX throughout 2020. They are also the second startup to register shares on the IDX Acceleration Board, after Pigijo first did it in early 2020.
The increase in the price of Cashlez shares on its first day was inversely proportional to the condition of the composite stock index which declined on the same day. Jakarta Composite Index (JCI) had dropped into the red zone due to uncertainty sentiment in the middle of the capital market.
Optimistic Company in Developing through IDX
I Gede Nyoman Yetna as IDX Assessment Director said, “As the first registered fintech payment startup and alumni of the Indonesia Stock Exchange incubator program, we sincerely hope that PT Cashlez Worldwide Indonesia.Tbk will become a reference for other startups that are not yet listed on the exchange to take the floor to the capital market,”
Quoted from The Jakarta Post, Cashlez Tee President Director Teddy Setiawan said he was optimistic that his company could develop through the Indonesian stock exchange.
The company, PT Cashlez Worldwide Indonesia Tbk, with the CASH issuer code, released 250 million ordinary shares in the name of or around 17.507% of the issued and fully paid capital. As mentioned above, the price of each share offered is IDR 350. Thus, the total IPO value is IDR 87.5 billion.
Some of the IPO Funds will be used to Acquire STI
In its prospectus, CASH plans to utilize 61.31% of the funds raised to take over the shares of PT Softorb Technology Indonesia (STI). The CASH will take over 1,020 shares or 51% of all issued and fully paid capital of STI. Meanwhile, 38.69% of the remaining funds will be used as working capital for CASH going forward.
The acquisition of a portion of STI’s shares is considered important by CASH because its products or services will work in synergy with the business activities of the company. In addition, this acquisition is also expected to increase market share.
The business activities of STI are providers of information technology solutions that focus on RFID and Smart Card technology for payment, identification, access control, and others. In March 2020, Teddy said that the acquisition process was needed to build the front-end aspects of Cashlez’s transaction activities going forward.
Target Expansion of up to 10,000 SMEs
For its own expansion target, Cashlez plans to increase the number of trading partners who use their platforms to from 7,000 to 10,000 SMEs by 2020.
Cashlez was founded by Teddy Tee in 2015. Cashlez is a fintech provider of payment transactions for merchants. According to SIAR.com records, in 2017, Cashlez received funding from Bank Mandiri’s venture capital, Mandiri Capital Indonesia.
Then in 2019, Cashlez obtained funding from Sumitomo Corporation. But the value of the funding has not been revealed twice.
Cashlez has also partnered with several partners. For example he has collaborated with Bank Mandiri, BNI & Maybank as a merchant aggregator. Then in 2019, Cashlez also collaborated with GoPay.