“Bukalapak IPO: Biggest Stock in History Drops Quickly, Impacting Market Liquidity – CNBC Indonesia Research”

Jakarta, CNBC Indonesia – Once touted as opening the way for the ‘party’ of technology stocks on the stock exchange at the start of the floor on the stock exchange, PT Bukalapak.com Tbk (BUKA) has instead become the largest IPO (initial public offering) stock in history.

This is because Bukalapak is an issuer with a pool of funds proceed The largest IPO in the history of the Indonesian Stock Exchange, which reached IDR 21.90 trillion.

The issuer of Telkom’s subsidiary (TLKM), PT Dayamitra Telekomunikasi Tbk (MTEL), which was listed on May 22, 2021, was unable to overtake BUKA’s position, with pocketed IPO funds of IDR 18.79 trillion.

Open with proceed the jumbo at that time also sucked up market liquidity. On its initial debut on the stock exchange, August 6 2021, its shareholders celebrated because BUKA shares jumped 24.71% to Rp1,060/share.

On the second day, 9 August 2021, BUKA was still able to increase by closing at IDR 1,110/share or strengthening 4.73% on a daily basis. That level is the all-time high (ATH) daily OPEN stock level to date.

This is because, since then, BUKA shares have fallen rapidly, with the last time being above the IPO price on September 30 2021 (Rp 860/share).

In fact, on March 25 2023, BUKA’s share price was at its lowest closing level (all time low/ATL), namely at Rp. 197/share.

Meanwhile, when compared to the position at the close of trading session I on Monday (29/5/2023), BUKA shares have fallen 76.47% from the price at the time of the IPO.

If calculated roughly between the decline of 76.47% and proceed BUKA’s IPO amounted to IDR 21.90 trillion, the ‘boncos’ value of BUKA shares since their debut on the stock exchange reached IDR 16.75 trillion.

Large IPO funds and overpriced valuations (overvalued) in the midst of the e-commerce company that was still losing money, plus the rotation to sectors outside of technology at that time, was the right combination that made Bukalapak’s stock quickly drop to the bottom like a bullet.

Moreover, the global economic situation was then filled with uncertainty, with the fierce actions of the strongest central bank in the world, the Federal Reserve (The Fed), which tightened monetary policy (tapering offinterest rate hikes), finally hitting the technology sector which includes Bukalapak.

Now, BUKA shares, as well as other Indonesian giant technology issuers, still haven’t found the momentum to be able to soar high, as the era of high interest rates has not yet ended and investors are still closely watching the tech company’s efforts towards a path of profitability.

CNBC INDONESIA RESEARCH

research@cnbcindonesia.com

Disclaimer: This article is a journalistic product in the form of the views of CNBC Indonesia Research, the research division of CNBC Indonesia. This analysis does not aim to persuade readers to buy, hold, or sell related investment sector products or assets. The decision is entirely up to the reader, so we are not responsible for any losses or profits that arise from that decision.

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