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Bukalapak raises $1.5 billion at IPO


Bukalapak’s expected shares price will be set between $0.052 and $0.059, according to sources

Indonesian e-commerce company Bukalapak raised $1.5 billion at an initial public offering (IPO), three sources told the US News and World Report Wednesday.

A source told the press that the Bukalapak IPO had captured more than $6 billion in demand. This is way ahead of Bukalapak’s original goal of $300 million in early funding. According to Reuters, that number surged to $800 million before nearly doubling to current levels.

Bukalapak’s expected shares price will be set between IDR750 ($0.052) and IDR850 ($0.059), according to sources. The market debut is scheduled for August 6th. Bukalapak is Indonesia’s fourth-largest company in the $40 billion e-commerce space, competing with Tokopedia, Sea, Shopee and Alibaba’s Lazada.

One source told Reuters that the GIC and Microsoft-backed Bukalapak is attracting the attention of long-only funds, sovereign wealth funds, and local investors to IPOs.

In April, Bukalapak raised $234 million with Singapore’s sovereign wealth fund GIC and media group Emtek in a Microsoft-led funding round. Bukalapak is also aiming to merge with a special purpose acquisition company (SPAC) and will be listed in the US. The company is working with Bank Mandiri Securities, the securities arm of Bank Mandiri, for an IPO.

Bank of America and UBS are co-global coordinators and bookrunners with Bank Mandiri.

Bukalapak has pledged to turn SMEs using the B2B e commerce platform into banking agencies. Through partnership, Reuters reported last year that it was one of the largest lenders in the country.

According to the report, Bukalapak will introduce grocery sellers and street vendors to the services of Bank Mandiri, Indonesia’s largest bank. Through this service, merchants can help shoppers without smartphones open bank accounts.

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