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Thursday, August 5, 2021
Stocks & Shares

Online marketplace Bukalapak targets US$1.50 billion in IPO

Bukalapak

The company aims to debut on Aug 6, taking advantage of plans to relax requirements around listings

Online marketplace Bukalapak aims to raise US$1.50 billion in an initial public offering (IPO), the first of Indonesia’s tech unicorns to tap the country’s stock market.

Bukalapak plans to offer nearly 19.3 billion shares at 750 to 850 rupiah ($0.052 to $0.058) apiece, raising nearly US$1.1 billion, according to terms of the deal obtained by Bloomberg News.

The e-commerce giant would be valued at nearly US$5.6 billion. It also set an over-allotment or greenshoe option that could take the total shares issued to a maximum 25.77 billion shares.

The company aims to debut on Aug 6, the company said in an IPO prospectus, taking advantage of plans to relax requirements around listings.

At the top of the range, it would rank as Indonesia’s largest-ever IPO, eclipsing PT Adaro Energy’s US$1.3 billion offering in 2008, according to data compiled by Bloomberg.

The company started taking investor orders for the offering Friday and plans to price the shares on July 19, according to terms of the deal.

With a stock market value of US$450 billion, Indonesia is headed for a bumper year.

There have been more than 20 IPOs so far this year and more are in the pipeline, IDX director I Gede Nyoman Yetna told reporters last week.

Besides Bukalapak and ride-hailing giant GoTo, three other local firms with a combined value of roughly US$2 billion are looking to float shares, Pandu Sjahrir, a commissioner at the Indonesia Stock Exchange, has said.

Stock exchanges around the world are trying to capture a slice of a global IPO boom. Indonesia joins other bourses in relaxing regulations to attract often loss-making but highly sought-after fast-growth startups.

Bukalapak is going public as South-east Asia’s startup scene matures and investors seek exits. The region’s most valuable private firm, Grab Holdings, aims to go public via a blank-check firm in the second half of the year.

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