Wow! Bukalapak IPO reportedly oversubscribed four times

Reporter: Dityasa H. Forddanta | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Although some parties consider Bukalapak’s valuation to be expensive, this assessment does not necessarily make initial public offering e-commerce it is empty of fans. In fact, Bukalapak’s IPO is reportedly experiencing excess demand or oversubscribed.

A KONTAN source said the exercise price was set at Rp 850 per share. This is the right limit of the IPO price range that was previously set, at a minimum of Rp 750 per share.

At this implementation price level, Bukalapak’s IPO oversubscribed up to four times. In other words, Bukalapak reaps optimal fresh funds, up to Rp. 21.9 trillion.

Until this news was revealed, no related parties were willing to provide confirmation. The Indonesia Stock Exchange (IDX) has also not detailed the development of technical adjustments for listing shares on the trading board.

Also Read: Aiming for jumbo valuation, technology companies are busy IPO

In the IPO event, Bukalapak released 25.76 billion new shares. This amount is equivalent to 25% of the issued and fully paid capital after the IPO.

Around 66% of the IPO funds will be used as working capital. Then, the rest will be used for working capital for a number of Bukalapak subsidiaries.

In detail, about 15% is allocated for PT Buka Mitra Indonesia and about 15% for PT Buka Usaha Indonesia. Meanwhile, 1% each will be allocated to Open Joint Investment, Open Procurement Indonesia, Bukalapak Pte Ltd, and Five Jack.

The previous IPO of Bukalapak split investors into at least two groups. First, the futurists who are willing to buy shares even though startups are still losing money because they consider the prospects and traditional people who are reluctant to buy expensive shares but are still making losses.

Also Read: The Wave of Global Startup IPOs Hasn’t Ended

Silva Halim, Managing Director of Mandiri Sekuritas, explained that startups, especially those with a big tech scale, can no longer use conventional valuations.