Jakarta. Digital exchange platform NFC Indonesia seeks to raise Rp 333.33 billion ($24 million) in an initial public offering in July to fund business expansion, invest in human capital and improve its IT systems, the company said last week.
NFC's operation currently comprises digital exchange and media and entertainment but the upcoming IPO will see it expand into four different units. These are a digital exchange business, digital advertising exchange, communication platform exchange and media and entertainment business.
The company, which is a subsidiary of publicly listed investment firm Kresna Graha Investama, is looking to sell 166.67 million new shares, or the equivalent of 25 percent of its enlarged capital. NFC plans to offer the shares at between Rp 1,500 and Rp 2,000 apiece.
The book-building period began on June 8 and will end on June 22 before the shares will be offered to investors on July 3-5. NFC Indonesia will list its shares on the Indonesia Stock Exchange (IDX) on July 10.
NFC is using an application program interface, or API, that specifies how software components interact. The technology enables the company to interconnect big data from myriad business lines. This business model also allows the company to curate the experience or behavior of customers.
"Despite the Idul Fitri exodus, during which the domestic stock exchange will be closed, the global market will still operate normally. That's why we are confident that investors will respond positively to this IPO," said Octavianus Budiyanto, director of Kresna Sekuritas, which along with Sinarmas Sekuritas and Trimegah Sekuritas Indonesia, will act as underwriters of the IPO.
The company will offer 60 percent of the new shares to domestic investors, while the remainder will be available to foreign investors.
About 60 percent of the proceeds from the IPO will go towards working capital, 30 percent will be invested in its IT system and the remainder will be used to acquire new talent.
Through its digital business unit, the company introduced NFCXC, a real-time phone credit marketplace. The company also plans to introduce OONA TV, a free-streaming video and TV entertainment service, in the near future.