Bukalapak Wants To IPO Targets IDR 11.4 Trillion Jumbo Funds

Achmad Zaky and Rachmat Kaimuddin. (Photo: Doc. Antara)

JAKARTA - One of Indonesia's e-commerce giants, Bukalapak, seems to be really serious about going on the stock exchange with an initial public offering (IPO) scheme. The value of Bukalapak's IPO even reached tens of trillions.

According to Reuters, quoted on Thursday, June 17, the IPO plan is estimated at US$800 million or equivalent to Rp11.40 trillion. This was stated by two Reuters 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 percent to 15 percent of the company's shares from a valuation of around US$4 billion to US$5 billion, " said the source.

The listing prospectus is said to have been submitted to the Indonesia Stock Exchange. IPO proceeds range from USD 500 million to USD 800 million, depending on investor demand and market conditions.

Bukalapak is an 11 year old startup that already has more than 100 million users. Many big investors are behind Bukapalak, including Microsoft, Singapore's GIC, local media conglomerate Emtek, Standard Chartered and South Korean web portal Naver Corp.

Bukalapak initially aimed to raise $300 million from its IPO before wanting to merge with a special purpose acquisition company (SPAC) in the United States, but is now focusing solely on its IPO.

The listing on the IDX will reportedly take place in mid-August 2021. If realized, this will be a new milestone for the Indonesian stock exchange.

IDX's efforts to encourage Indonesian startups to list shares in Indonesia rather than on the stock exchange to the United States will soon be implemented.