Artajasa Pembayaran Elektronis Cancels IPO on the Indonesia Stock Exchange
Indonesia-based electronic transaction services provider Artajasa Pembayaran Elektronis, which is indirectly owned by Indosat Ooredoo, decided to cancel its initial public offering (IPO) on the Indonesia Stock Exchange because the company may have found an alternative for fresh funds to finance the company's purchase of information technology equipment and to strengthen its working capital.
On 1 March 2018 Artajasa Pembayaran Elektronis had conducted a public exposure in preparation for its listing on the Indonesia Stock Exchange. Results were actually great (despite the high degree of uncertainty that is plaguing markets at the moment), showing that the company's IPO would be oversubscribed by nearly four times.
However, Zul Irfan, Corporate Secretary at Artajasa Pembayaran Elektronis, said the company found a more attractive option than an IPO and is now in talks with a strategic investor. At this moment Artajasa Pembayaran Elektronis refrains from mentioning the name - or any other details - of the potential investor.
If both sides can reach an agreement, then the new investor will partner with Artajasa Pembayaran Elektronis starting from the second quarter of 2018. Deva Rachman, Head Corporate Communication at Indosat Ooredoo, said a share divestment is required for Artajasa Pembayaran Elektronis because a Bank Indonesia regulation limits foreign ownership in domestic electronic payment companies to 20 percent.
Artajasa Pembayaran Elektronis' parent company - Aplikasinusa Lintasarta - is owned by Indonesian telecommunications services and network provider Indosat Ooredoo. Meanwhile, Indosat Ooredoo is for 65 percent owned by Qatar-based Ooredoo Asia Pte. Ltd.
Artajasa Pembayaran Elektronis, which was established in 2000, is the operator of ATM Bersama, an interbank network in Indonesia that connects the ATM networks of 21 banks in Indonesia.
