Bukalapak increases its IPO to $ 1.5 billion, the largest Indonesian issue


From Anshuman Daga

SINGAPORE (Reuters) – Indonesian e-commerce company Bukalapak has increased its IPO by about a third to $ 1.5 billion, underscoring hot investor demand for the country’s largest local issue, two said with the matter trusted sources on Friday.

Until a few months ago, Bukalapak, the No. 4 e-commerce company and Indonesia’s first tech unicorn to go public, was only looking to raise $ 300 million. That jumped to $ 800 million and then to $ 1.13 billion last week when investors called for part of the company.

The listing comes at a time when the pandemic has been driving demand in the Indonesian e-commerce market worth $ 40 billion. Bukalapak focuses on micro, small, and medium-sized businesses as it competes with larger competitors Tokopedia, Sea Ltd’s Shopee, and Alibaba’s Lazada.

Bukalapak, which has Singapore-based government investor GIC and Microsoft among its funders, has sparked interest from long-only funds, domestic investors and sovereign wealth funds in its IPO, said one of the sources unauthorized to speak publicly on the matter .

There was no immediate response to a Reuters query to Bukalapak.

The IPO is likely to be at the high end of its price range of 750 and 850 rupiah apiece, the sources said.

The order books, which will close on Monday, are already covered multiple times across the price range, the sources said, adding that the IPO will be raised to $ 1.5 billion, or the maximum 25% of its market value.

Bukalapak will make its market debut on August 6, fueling a lackluster IPO sector in the largest economy in the Southeast.

GoTo, the merged company of Tokopedia and the ride-hailing and payment company Gojek, is also planning an IPO. Sources said GoTo plans to raise at least $ 2 billion in pre-IPO funding over the next few months, which will be followed by a local listing.

The debuts of Bukalapak and GoTo will fuel Indonesia’s long-subdued IPO market, which continued to stagnate during the pandemic. The money raised through IPOs more than halved to $ 470 million in 2020, according to Refinitiv data.

(Reporting by Anshuman Daga; Editing by Ed Davies)

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