PT Teknologi Karya Digital Nusa Tbk (TRON) will go public later in February and release about 750 million shares worth IDR 165 billion (US$ 10.9 million), with 30% of the fund will be used for Capital expenditure (Capex) and the rest for working capital.
Established in 2011, Teknologi Karya Digital is a telematic and internet of things (IoT) based information systems solutions company. It uses the latest technology in providing services and solutions.
Fresh funds for business expansion
According to IDN Financials, the company will use some of the IPO funds for its Capex expansion in West Java. The rest will be used for working capital that will include project operational costs and the purchase of raw materials.
Teknologi Karya Digital sets IPO in 2023 on the Indonesia Stock Exchange (IDX), releasing about 750 million shares. The issued IPO is equivalent to 25.42% to the company’s shares. The shares will be valued at a nominal of IDR 20 and is offered between IDR 140 and IDR 220 per share. The company expects to reap up to IDR 165 billion from the IPO.
The company will start the IPO book building on February 10-20, 2023. The IPO will be held from February 28 to March 3, 2023, and be listed on the IDX on March 7, 2023.
Risks in IoT business
There are risks in the IoT business, which includes:
- Security risks: IoT devices are vulnerable to hacking, malware and other cybersecurity threats. These can result in data breaches, privacy violations and other harmful consequences. According to the Communication & Information System Security Research Center (CISSREC), Indonesia has one of the lowest security scores in the bank sectors. This might also affect the security of other sectors that use digital technology.
- Privacy risks: IoT devices collect a lot of personal data, which can be misused by hackers or companies. The lack of regulations in this area makes it difficult to protect consumer privacy. Meanwhile, Indonesia is also known for its privacy risks in the digital sector. Various instances where digital privacy information was leaked to the public, or even sold.
