WIR's IPO: Dawn of the Metaverse Era in Indonesia?

The Indonesia Stock Exchange will have a new issuer under the ticker name WIRG. PT WIR Asia Tbk, which is said to be one of Indonesia's first metaverse development companies, has set an Initial Public Offering (IPO) at a price of Rp168 per share. WIR offered up to 2.3 million shares, quoted from their prospectus that was released on Tuesday (3/29), representing up to 20% of the issued and fully paid capital following the public offering. WIR intends to raise Rp392 million through a series of equity funds. According to the Company's Board of Directors Decree No.035/SKD/ESA/WIR/XII/2021, the company also held an Employee Stock Allocation (ESA) program with a maximum of 1.02% of the shares offered in a public offering, or equivalent to almost 24 million shares. With an offering price of Rp168 per share, WIR Asia can pocket a total of Rp392.63 billion in new funds. "A total of Rp392.6 billion has been raised through public offerings," WIRG management wrote on Tuesday (3/29). The price set is close to the maximum price that can be offered during book building. Each WIR Asia share was initially offered at a price of between Rp 150 and Rp 170 during that period.

The company also simultaneously issues a maximum of up to 771 million shares of Series I Warrants in conjunction with the new shares, or up to 8.25% of the total number of issued and fully paid shares at the registration statement connection with the public offering. Series I Warrants are distributed free of charge to new shareholders whose names appear in the shareholders' register on the allotment date. Around 83.54% of the proceeds from the public offering will be used for capital expenditures and working capital or operational expenditures by subsidiary companies. In detail, approximately 18.04% will be distributed to PT Are Teknologi Kreasi (ATK), followed by approximately 29.56% to PT Tiga Akar Dreams (TAM), and 52.40% to PT Vatar Media Raya (VMR). The company will then use 7.68% of the funds for capital expenditures, 3.30% for working capital, and 5.48% for business development or expansion via strategic partnerships. The company's initial public offering will take place between March 29th to March 31st, 2022, and the estimated date of listing of shares and warrants series I on The Indonesia Stock Exchange (IDX) is April 4th, 2022.

The movement of technology stocks received positive sentiment amid the metaverse's disruption, particularly in the run-up to GOTO and WIRG's initial public offerings. Ivan Rosanova of Binaartha Sekuritas believes that technology issuers have the potential for long-term performance improvements due to metaverse trends and other industry opportunities. "The long-term potential for performance improvement is related to the banking industry's trend toward the metaverse, as well as the possibility that other industries will follow," Ivan conveyed to Bisnis (3/29). Ivan added that the positive sentiment would also benefit technology stocks such as PT DCI Indonesia Tbk. (DCII) and PT Indointernet Tbk (EDGE). Not only data centre issuers but also issuers in the digital infrastructure sector, such as PT Yelooo Integra Datanet Tbk. (YELO) and PT Kioson Komersial Indonesia (KIOS) will benefit from the presence of metaverse technology. "There is YELO and KIOS, which collaborate to build a digital infrastructure that enables MSMEs to enter the metaverse," Ivan continued. Metaverse is also expected to be able to assist MSMEs in developing a digital economy. The WIR Group also collaborates with the Lumina Kaya Indonesia project to expand MSME market access to the digital realm without boundaries. Many international investors in the stock market have been keeping an eye on metaverse stocks over the last year. With Indonesia's first metaverse company seeking an initial public offering, the excitement is palpable. After all, in the coming years, the metaverse may become a part of our lives. To be sure, nobody can truly predict how much it will affect our lives. However, numerous businesses are already preparing for the metaverse era.

Sources

Bisnis

CNBC Indonesia

Kontan

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