Jakarta, 7 December 2021 - Mandiri Group, consisting of PT Mandiri Capital Indonesia (MCI), PT Mandiri Sekuritas (“Mandiri Sekuritas”), and Mandiri Institute, launches a research paper or whitepaper titled The Billion Dollar Moment: A Paradigm Shift for Indonesian IPOs. The whitepaper covers 4 (four) parts which are The Exit Landscape for Startups, IPO Specific Section, IPOs for Startups, and Policy Treatment for IPOs in Indonesia.
Since the exponential raise in the number of tech startups in Indonesia, M&A has been one of the most popular exit strategies. Recent M&A examples are Moka acquired by Gojek, Qontak acquired by Mekari and Bizzy is acquired by Warung Pintar. Nonetheless, Mandiri Group, through this Startup IPO Whitepaper, has revealed that public listing is also an exist landscape option that should be considered. The Whitepaper further discuss trends and regulations for startup IPO, the pros and cons of the startup to go public and the benefits of IPO in IDX.
Although M&A for tech startup industries is on the rise in Southeast Asia (SEA), such as Grab listed in Nasdaq recently, but the number of IPOs in Indonesia also has significantly increased over the past four years and will continue to rise due to government supports. Several local tech companies such as Bukalapak, Cashlez, DIVA, Kioson and others has recently gone public on IDX, while several others more such as Traveloka and GoTo are filled to go public soon. In the effort to increase the number of tech IPO, Indonesian government has updated its tech IPO regulations to make it more hospitable for tech firms. Now, companies do not have to be profitable to be publicly listed, and the Omnibus Law has reduced licensing requirement and streamlines processes. Further, the government is in discussion about allowing dual market listing that is previously prohibited. In addition, the government also reduced corporate tax percentages and given other additional tax incentives to support listed companies.
The Whitepaper also introduces the positive repercussion of tech companies IPO in IDX towards Indonesian economy despite the side effect of public listing such as scrutiny, potential loss of control, market risk and a costly IPO preparation. Through IPO in IDX, tech companies will support higher GDP, receiving an increase in tax revenue, supporting lower unemployment rate, increased competition and innovation, more foreign investment, and other value creation for both the company and the economy.
Therefore, in the effort of supporting tech startup IPO, Mandiri Group has provided a nurturing place for Startups; MCI, a venture capital for capital providence and managerial expertise, follow by the underwriting process for IPO with Mandiri Sekuritas. This conveys that Mandiri Group provides an end-to-end service in nurturing Startup until IPO.
President Director of MCI, Eddi Danusaputro, said, ”MCI is very supportive of the Startup ecosystem, for both Startups in MCI’s portfolio as well as non-MCI portfolio Startups. MCI is committed to continuously bridge innovations between Mandiri Group and the Startup ecosystem, that MCI’s goal is to add value to both Mandiri Group and the startups. Other than that, MCI is excited to see more exit potentials in the Startup ecosystem.”
Similarly to Eddi, Oki Ramadhana, President Director of Mandiri Sekuritas said,”Mandiri Sekuritas is highly committed in providing the best and most suitable capital market and advisory solutions to our clients in accelerating their business growth. This Mandiri Group IPO whitepaper provides comprehensive and up-to-date information on what and how Startups be well prepared for IPO in Indonesia. It demonstrates our continuous supports for tech companies which consider growing their business through Indonesian capital market in the near future.”
Andry Asmoro, Executive Director of Mandiri Institute said,” Regulators and stakeholders have come to understand that a thriving technology IPO sector will provide sweeping benefits for the Indonesian economy and public welfare. It can contribute tremendously to a better financial deepening state in Indonesia. Startups IPOs can generate value throughout the economy, for individuals, companies, the government, and society as a whole.”
