Digital Platform Firm Arkadia Seeks to Raise $4m in August IPO

Digital media platform Arkadia Digital Media plans to raise up to Rp 60 billion ($4.14 million) in an initial public offering in August. (BeritaSatu Photo/Mohammad Defrizal)

By : Sarah Yuniarni | on 9:34 PM August 06, 2018
Category : Business, Corporate News

Jakarta. Digital media platform Arkadia Digital Media plans to raise up to Rp 60 billion ($4.14 million) in an initial public offering in August, in an effort to expand business, increase working capital and improve its hardware system.

Arkamedia has three subsidiaries, namely Integra Archipelago Media, Mata Media Nusantara and Arkadia Media Nusantara. The company operates online news portal Suara.com, football online portal Bolatimes.com, celebrity news portal MataMata.com and technology news platform HiTekno.com.

The upcoming IPO will allow the company to expand its business by launching in the next two months lifestyle portal Dewiku.com, automotive portal MobiMoto.com, traveling news portal Guideku.com and health news portal HiMedik.com. 

The company will sell 150 million of new shares, equivalent to 54.55 percent of its enlarged capital. Arkamedia plans to sell its shares at between Rp 200 to Rp 500 apiece. 

The book building began on July 25 and will end on Aug. 13, before the shares will be offered to investors on Aug. 21-24. The company will list its shares at the Indonesia Stock Exchange (IDX) on Aug. 29.

According to Arkadia Digital Media chief operating officer Suwarjono, web portal Suara.com, the company's crown jewel, has about 2 million daily users.

He said the company targets to have between 30 percent and 50 percent increase of frequent users from its seven news platforms by the end of the year — around 100 million users.

"We had offers from angel investors or venture capital companies, but we choose to go for an IPO, because we want to be independent as a media company, in which the public will hold the majority shares," Suwarjono told the Jakarta Globe. 

About 34 percent of the proceeds will be allocated for expanses related to infrastructure and hardware, 53 percent for platform and software development, while the remainder will be used as a working capital. 

Brokerage firm Danatama Makmur Sekuritas serves as the lead underwriter for the IPO. 

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