By: Ahmad Sadat
Asiavesta Capital is an investment holding that invests in established small/medium-sized enterprises, has a strong and unique business, great long-term growth potential, and wants to transform into a corporation in an inorganic way.
We will be a strategic partner/shareholder who helps restructure the company holistically so that it is ready to become a medium/large corporation and/or go public within 2 to 5 years.
This is a continuation of the previous writing https://amsadat.blog/2021/10/14/scale-up-vs-quantum-leap-1/. I will explain further the Asiavesta Capital Mission and examples of its application in IDeA Indonesia, one of Asiavesta Capital’s mainstay investees.
We will be a strategic partner/shareholder…
We’re investors. Not a consultant, mentor, coach, let alone a realtor. Therefore we will be selective once choosing our investees. Because if you have decided to invest, we will all out, just like the founder. Of course, for investees, we can be consultants, mentors or coaches at the same time.
But before that happens, it could be that we will spend a lot of time and a long time getting to know the investee. Then do the exploration. If it is suitable, then we do due diligence. This will also take a long time because we will confirm and confirm many things. It could be that the end is that we don’t get in because we’re not confident or for some other reason, incompatibility for example.
If the due diligence goes smoothly and we decide further then we will compile a term sheet or proposal for a merger/acquisition plan with various alternatives, and the most important thing is the goals and roadmap that will be carried out. Not necessarily also agreeable. And it doesn’t continue.
At IDeA Indonesia we place a finance director who helps founders manage the company on a day-to-day basis. Also involved in many strategic decision-making. Also utilize the resources we have, including but not limited to facilities / synergies between subsidiaries, consultants, partners, networks / networks and so on, as needed.
… which helps the company restructure holistically…
Previously, IDEA was still an individual business. Then we masui and fixed a lot of administrative, legal and financial things. We established several universities according to the business field and arranged the structure. Arranging a capital deposit. Improving corporate and personal taxation. Legality and licensing were also improved. All are made in sync. Don’t let the company get big but leave tax problems.
This is called holistic improvement. And it is mandatory to do. Because we are targeting companies to be able to IPO according to the schedule we plan. So basically our company is dealing with IPO standards from day one. Complicated. But once it works. Even then, at the time of the pre-IPO and due diligence by the authorities, several things were still found that still had to be addressed.
… so that it is ready to become a medium/large corporation and/or go public within 2 to 5 years.
Why should it be an IPO? This is a commonly asked question. The answer is because we want to raise the company as a corporation, with international standards. So an IPO is not a goal, but basically a standard that we use. And not necessarily the end is going public, it could be that we will get strategic investors from abroad, for example. Outside of the IPO.
How difficult is an IPO?
To give you an idea, when we were managing 30s billion bank loans at IDeA, it took us about 1 month to approve. And just so you know, the time of the credit contract and disbursement, the certificate we guarantee is still not completed, aka it is still in progress. So the bank only holds a cover note from a notary that the certificate is being taken care of at the BPN. But credit can be disbursed thanks to the bank’s trust in Asiavesta Capital. And of course to the prospects of IDeA.
Alhamdulillah, for commercial bank loans, we are very experienced and have many connections. The process is quite fast and easy. We are even used to processing, using and paying off hundreds of billions of credits. Alhamdulillah, our reputation is quite maintained in banking.
When we wanted to IPO, we made preparations since October 2020. Registration with the authorities (IDX and OJK) in February 2021. Finally, we managed to list on the stock exchange in September. Almost a year of time we prepare ourselves and undergo due diligence by the OJK and IDX. Know how much money we get? 30 Billion. It’s the same with the credit we can take care of in 1 month.
We can get enough bank credit to only pay provisions below 1%, but to go public we spend up to about 10% of the emission value. With a time comparison of 1 month and 1 year, as well as very time-consuming, energy, thoughts and emotions.
So if it’s just fundraising or getting funds, an IPO will be very expensive. It may not be worth it. But it turns out that even during the IPO process and before we officially listed, we have experienced the tremendous benefits :
- Our company standards are fully compliant both legally and financially. Not only recognized at the national level but at the international level, which means that we want foreign investors to enter. We are even ready to become the first hospitality training company to get ISO certification. IDEA even set its new vision as a World Class Hospitality Company. And it’s not just a slogan or a style. It’s really world class!
- By holding the status of Tbk (even though it has not been officially listed), we have received a lot of cooperation offers from large companies. Some are from old clients. But suddenly we became more “looking kinky” than ever before, and made them interested in improving the relationship as an equal partner, not just a supplier-customer.
- By listing on the stock exchange, IDeA managed to “cash out” intangible assets. Assets that have not been seen on the balance sheet such as experience, human resources, systems and so on have been officially recognized by the market in the form of stock agios, precisely in the form of the company’s market value which far exceeds the value of its capital deposit.
There are many other benefits that we feel with an IPO. Again, an IPO is not the goal. Entering the exchange is not the goal. Can strategic investors from abroad is also not the goal. Those are all roads. The way to raise the company. Because the larger the company, the more it will be able to provide benefits. For the crowd. For the nation. For the country. For mankind. God willing.