Bukalapak's Shares Immediately Soared By 25 Percent And Got Auto Rejection (ARA), Investors Scramble?

Bukalapak CEO Rachmat Kaimuddin with Bukalapak President Commissioner Bambang Brodjonegoro. (Photo: Doc. Bukalapak)

JAKARTA - The price of PT Bukalapak.com Tbk immediately skyrocketed by 25 percent upon listing its initial shares on the Indonesia Stock Exchange (IDX), Friday, August 6. The issuer with the code OPEN immediately experienced an auto-reject (ARA).

The issuer's stock coded BUKA opened trading at the level of IDR 850 per share and immediately shot up 24.74 percent to the level of IDR 1.060 per share. BUKA was transacted 983 times with a volume of 223 million units of outstanding shares. The transaction value was recorded at IDR 236 billion.

Bukalapak is the 28th listed issuer on the Indonesia Stock Exchange. BUKA offered as many as 25.76 billion shares to the public or 25 percent of the total issued and fully paid capital, with an offering price of IDR 850 per share.

Thus, the company received fresh funds of IDR 21.9 trillion from the IPO. This is the largest fund raised in the history of the Indonesia Stock Exchange. BUKA plans to use 66 percent of the funds from the IPO as working capital.

The remaining 34 percent will be used for working capital in subsidiaries. The remaining 34 percent of the funds from the IPO are planned to be used for six Bukalapak subsidiaries. Where the company will allocate 15 percent each for PT Buka Mitra Indonesia, and PT Buka Usaha Indonesia for working capital.

Meanwhile, the other four subsidiaries will each get 1 percent of OPEN's IPO funds for business capital. The four companies are PT Buka Investasi Bersama, PT Buka Pengadaan Indonesia, Bukalapak Pte. Ltd, and PT Five Jack.