Jakarta, CNBC Indonesia – The plan to offer shares of one of the Indonesian e-commerce giants, Bukalapak, is starting to open. As quoted by Reuters, Wednesday (16/6/2021), the IPO plan is estimated to be worth US$800 million or equivalent to Rp. 11.40 trillion, according to two sources familiar with the plan.
The IPO is said to take place in August 2021. The IPO of Bukalapak is one of two big technology companies that are planning this year and are being awaited by domestic market players.
This IPO is expected to be the largest in Indonesia in 10 years and the largest ever in a country, conducted by a startup. After that, the possibility of GoTo’s IPO being the next biggest milestone after Bukalapak.
Taking advantage of the sharp increase in investor interest in Southeast Asia’s fast-growing technology sector, Bukalapak, Indonesia’s fourth largest e-commerce company, will sell 10% to 15% of the company’s shares from a valuation of around US$ 4 to US$ 5 billion, sources said. that.
The listing prospectus is said to have been submitted to the Indonesia Stock Exchange. IPO proceeds range between US$ 500 million and US$ 800 million, depending on investor demand and market conditions.
Bukalapak has not yet issued a comment.
This 11-year-old startup claims to have more than 100 million users. Many big investors are behind it, including Microsoft, Singapore’s GIC, local media conglomerate Emtek (EMTK.JK), Standard Chartered and South Korean web portal Naver Corp.
Bukalapak initially aimed to raise $300 million from its IPO before looking to merge with a special purpose acquisition company (SPAC) in the United States, but is now focusing solely on its IPO, one of the sources said.
The listing on the IDX, according to sources, will take place in mid-August 2021, this will be a new milestone for the Indonesian stock exchange. IDX has done a lot of things to convince Indonesian startups to list shares in Indonesia instead of going to the stock exchange in the United States.
CNBC Indonesia once wrote that the IDX said that there was already an e-commerce company that had submitted documents to conduct an initial public offering (IPO).
However, IDX management is reluctant to provide detailed information regarding who the e-commerce company is. However, market news says it is very likely that the e-commerce company is Bukalapak from the Emtek Group. The indication of Bukalapak going to the previous stock exchange was also widely discussed.
“Regarding e-commerce in the pipeline, there is e-commerce that has submitted documents. For the name of the prospective listed company, the Exchange has not been able to submit it until the OJK has approved the issuance of the initial prospectus to the public as stipulated in OJK Regulation Number IX.A. 2,” said I Gede Nyoman Yetna, Director of Corporate Assessment of the IDX, to the media crew, Tuesday (8/6/2021).
Nyoman added that every share registration statement document will of course be processed by the Exchange according to the applicable evaluation procedure.
One of the main changes is the imminent revision of listing rules to allow unprofitable companies to go public, sources told Reuters.
With a population of 270 million, Southeast Asia’s largest economy has one of the fastest growing online shopping sectors in the world.
Indonesia’s e-commerce sector surpassed $40 billion in gross merchandise value in 2020, according to a June report by technology consultancy Momentum Works, which estimates that Bukalapak holds a 7% market share.
To differentiate itself, Bukalapak is focusing on expanding into offline services and into smaller cities in Indonesia, said Momentum Works founder Jianggan Li.
Even so, there is still a long way to go before catching up with bigger rivals – Sea (SE.N) e-commerce branches Shopee, Tokopedia and Lazada, which are owned by China’s Alibaba Group Holding Ltd (9988.HK).
“The competitive landscape of the large e-commerce market in Indonesia is getting stronger, catalyzed by the pandemic, with the gap between tiers of players widening,” Li said.
(hps / hps)
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