Indonesia’s oldest online store, Bhinneka Mentari Dimensi, plans to sell 30 percent of its shares in an initial public offering in 2020, and raise funds to expand the business, an executive said on Wednesday (19/07)
“To prepare for the IPO, we are now pushing for a healthy growth in sales, customer care and human resources. We are also improving to meet the Financial Services Authority [OJK] standards and qualifications,” Bhinneka Mentari Dimensi chief executive Hendrik Tio said in an email.
Bhinneka initially planned the IPO for 2018, but decided to postpone it to 2020.
The IPO will be a milestone for the company that started off as a computer supplier in 1995. Three years later, hit by Asia’s financial crisis, it was forced to open an online business.
Another e-commerce company, Mataharimall.com, is also planning an IPO in 2019, which may mark an inroad of e-commerce companies into the country’s capital market.
Bhinneka sells computers, cell phones, and IT-related products to its 1.5 million customers, including 4,000 small and medium business, ministries and provincial governments. It employs 6,000 merchants.
Last year, Bhinneka joined the government’s e-catalog program to provide goods and services for the Indonesian administration.
The company wants to open five new offline stores in Java, and expects to see a double-digit growth by the end of this year.
Hendrik said Bhinneka is also discussing new funding potentials with prospective local and foreign investors.
In November 2015, the company secured Rp 300 billion ($22 million) from local venture capital firm Ideosource.