E-commerce firm Bukalapak raises IPO on first day of trading

364
2
E-commerce firm Bukalapak raises IPO on first day of trading

Online platform PT Bukalapak.com raised initial public offering on its first day of trading after raising $1.5 billion in Indonesia's largest retail business offering.

Shares jumped 25% in trading from initial offer price of 850 rupiah in Jakarta. The increase hit the local limit that triggered the upper rejection of the bourse, with the price staying at 1,060 Rupees per 10: 12 local time as is present in the upper limit.

A successful debut by Bukalapak sets the tone for more regional tech giant IPOs. Indonesia's GoTo, created through a merger of ride sharing giant PT Aplikasi Karya Anak Bangsa, known as Gojek, and e-commerce company PT Tokopedia, is seeking to be valued in total at up to $30 billion by offering shares before the end of the year. PT Traveloka Indonesia and Singapore's Grab Holdings Inc. intend to go public via blank-check companies as soon as this year.

Three-fourths of the 44 companies that had started in Jakarta with the same share in the first session for 12 months ended an additional session at least 25% higher.

Bukalapak's gross merchandise value, the total amount of goods sold on its marketplace, will be $12 billion next year from an estimated $9 billion in 2021, which makes its $6 billion IPO valuation attractive compared with regional peers, added he.

Investors' response to the IPO also reflects increased interest in e-commerce companies, which are thriving despite mobility restrictions put in place to curb the pandemic.

Bukalapak, which counts Microsoft Corp. and Jack Ma's Ant Group Co. among its backers, doubled the retail pooling allocation to 5% or about 1.1 trillion rupees rupiah, according to the company The company still made a loss of 323.3 billion rupiah in the first quarter, against 393.5 billion loss a year earlier, according to the prospectus.

Today's debut gain pushes Bukalapak's value to 109 billion rupiah, according to Bloomberg data. It is among the top 15 companies in the market.