Run System, an Indonesia-based enterprise resource planning (ERP) software developer backed by telecommunications firm Telkom Indonesia, will hold a Rp50bn ($3.5m) initial public offering on the Indonesian Stock Exchange, DealStreetAsia reported yesterday.
The company intends to issue up to nearly 197 million shares priced between $0.016 and $0.018 per share. The number of shares represents up to 20% of its total issued and paid-up capital.
The offering is expected to take place on September 8, 2021, with BRI Danareksa and Mirae Sekuritas Indonesia serving as underwriters.
Concurrently to the offering announcement, Run System allocated a maximum of 1% of the shares through an employee stock allotment programme.
Founded in 2014, Run System provides a range of business management software and services including an ERP platform, an enterprise intermediary platform, a point-of-sale platform and human resources software.
The company is planning to use the IPO proceeds to fund new projects as well as cover overheads and operational costs. It also intends to invest in market acquisition, expansion, and research and development activities.
Telkom Indonesia subsidiary Metra-Net owns a 10.8% stake in the business, while MDI Ventures, the corporate venturing arm of Telkom Indonesia, holds 3.6%.
In 2014, Run System participated in the Indigo Incubator programme run by Telkom Indonesia.
The company also raised an undisclosed amount of funding from MDI Ventures and MDI-KB Centauri, an investment vehicle jointly formed by Telkom Indonesia and financial services firm KB Financial Group, at an undisclosed date.