Ready for IPO in April, Cashlez is Targeting to Get IDR 107.4 Billion
PT Cashlez Worldwide Indonesia (Cashlez) plans to conduct an initial public offering (IPO) in April. This payment technology aggregator (fintech) startup is also targeting to raise IDR 107.4 billion in fresh funds.
The company will offer 300 million shares, equivalent to 20.298% of the Company’s issued and fully paid capital after the IPO. “We are sure, this IPO will support the company’s business development,” Cashlez CEO Teddy Tee Setiawan said in a press release on Wednesday (3/18).
The share price offered is Rp 298-Rp 358 per share. That way, Cashlez is expected to reach a maximum of IDR 107.4 billion in fresh funds through an IPO.
All fresh funds obtained, after deducting emissions costs of around 48.57%, will be used to take over 51% of the shares of PT Softorb Technology Indonesia (STI). The rest will be used for company working capital.
Teddy said that the acquisition plan had received permission from Bank Indonesia (BI). STI is a provider of information technology solutions. To expedite the IPO process, Cashlez involved Sinarmas Sekuritas as the underwriter. This startup is also supported by Mandiri Sekuritas.
Effective Statement from OJK Expected to be Obtained In Early April
The company hopes that the Effective Statement from the Financial Services Authority (OJK) will be obtained on April 7, 2020. The Public Offering Period will take place on April 8, 2020. Furthermore, the Listing of Shares on the Indonesia Stock Exchange (IDX) is planned on April 20.
For information, Cashlez’s net income increased 96.7% to Rp 11.73 billion for the 10 months ending October 31, 2019. The main driver was the increase in the volume of transactions processed by Cashlez.
Transaction value also grows around 180% on an annual basis (year on year / yoy). The company, which was established in 2015, noted that the number of partners doubled yoy last year. Cashlez targets the number of partners to increase from 2 thousand in early 2019 to 5 thousand by the end of last year.
Last year, Cashlez received series A funding from Japanese investor Sumitomo Corporation. Funding is used to develop products, services, and expand networks. Throughout 2019, Cashlez expanded its reach to several major cities in Indonesia.
Cashlez Tee President Director Teddy Setiawan said his company had officially obtained a permit from Bank Indonesia (BI) and would be able to conduct business development through this IPO.
Cashlez Plans to Acquire 51% of STI’s Shares
The planned total of 48.57% will be used to acquire shares of PT Softorb Technology Indonesia (STI) and the remainder will be used as working capital.
“Cashlez is focused on the back end, behind. While we need a front end that can feed us transactions, one of which is done by STI for providing the front end they have. So integrally this business is sustainable. And it must be 51 % of the majority so that we can be more synergistic in terms of money can be consolidated to be healthier,” Teddy explained during the due diligence meeting and public expose, Monday (3/16).
Cashlez appointed PT Sinarmas Sekuritas as the underwriter. Sinarmas Sekuritas Director Kerry Rusli added that with this price range Cashlez’s valuation was around 13.5 times, with an average valuation of similar industries 50 times.
He uses gross transaction volume (GTV) in his valuation calculations. “Just a little extra Cashlez dropout IDX Incubator,” he added.
Meanwhile, Sumitomo Corporation as a shareholder stated that it was very enthusiastic that Cashlez became the first Fintech Payment Gateway company to conduct an IPO. He believes that payment systems will be increasingly needed in the coming new era such as mobility-as-a-service (MAAs). Sumitomo hopes that Cashlez will become the first unicorn in the Indonesian payment industry.