Bukalapak (BUKA) Changes the Use of IPO Funds, Analysts Say

Reporter: Kenia Intan | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. PT Bukalapak.com Tbk (BUKA) will make changes to the use of funds from the initial public offering (IPO). The plan has obtained shareholder approval at the Extraordinary General Meeting of Shareholders (EGMS) which was held on Thursday (23/12).

In an official statement disclosed, the change in the use of proceeds from the IPO is in line with BUKA’s management strategy, which is to focus on achieving growth for the company and its subsidiaries. Thus, the company and its subsidiaries can grow better in the future and can develop sustainably.

Therefore, management is committed to continuing to review and examine the potential and opportunities available. BUKA and its subsidiaries also continuously manage the costs incurred more efficiently.

Citing the previous disclosure of information, the initial plan to use the proceeds from the IPO was 66% for the company’s working capital. The remainder will be used for working capital of subsidiaries.

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In more detail, 15% each is allocated for PT Buka Mitra Indonesia and PT Buka Usaha Indonesia. Meanwhile, PT Buka Mutual Investment, PT Buka Procurement Indonesia, Bukalapak Pte. Ltd, and PT Five Jack are allocated 1% each.

After the changes were made, around 33 percent of the IPO proceeds were used for the company’s working capital. Meanwhile, around 34% will be used as working capital for subsidiaries.

The subsidiaries in question are PT Buka Mitra Indonesia and PT Buka Usaha Indonesia which are allocated 15% each. Others, allocated to PT Buka Investasi Bersama, PT Buka Pengadaan Indonesia, Bukalapak Pte. Ltd, and PT Five Jack by 1% each.

While the rest will be used by the company and its subsidiaries for growth and/or business development of the company and its subsidiaries. Including, but not limited to, purchase of shares and/or assets, and/or investment in shares in one or more companies.

Including, in the framework of a joint venture agreement (joint venture) and other appropriate transaction methods, as well as repayment of loan facilities used for business growth and/or development purposes, both now and in the future.

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Other uses, for working capital of subsidiaries, both existing and in the future, other than the previously mentioned subsidiaries.

Seeing this, Sucor Sekuritas Indonesia analyst Paulus Jimmy responded that the change in use and what was being done by BUKA was a good thing. According to his observations, the change in working capital from the initial 66% to 33% was due to a new allocation for business development which was estimated to be for acquisitions or corporate actions.