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Bukalapak is planning an IPO in homeland Indonesia

The domestic IPO plan of Indonesian e-commerce unicorn

Bukalapak is an Indonesian e-commerce unicorn startup. This e-commerce platform aims to raise about 21.9 trillion rupiah (equivalent to 1.5 billion USD). Bukalapak is the first Indonesian unicorn to choose the domestic market to carry out its IPO plan. The unicorn will sell about 19.3 million shares at 750-850 rupiah. Bukalapak is looking for a valuation of around $5.6 billion. It will apply greenshoe option to sell up to 25.77 billion shares.

A Bukalapak signboard

According to the plan, Bukalapak will be listed on the Indonesian stock exchange on August 6, 2021. This unicorn will take advantage of the loosening of policy governing listing operations in Indonesia. It will be the company with the largest IPO in the history of this Southeast Asian island nation. That means surpassing the $1.3 billion IPO of PT Adaro Energy in 2008. Instead of choosing the US stock market like most popular startups, the startup chose Indonesia’s home ground. This will be a milestone that sets a new precedent.

External conditions leading to Bukalapak IPO plan

COVID-19 has boosted demand for online shopping in the world’s fourth most populous country. And Bukalapak has to compete with many big competitors like Tokopedia, Lazada, or Shopee. Business report 2020 recorded the startup’s revenue of 95.8 million USD with 104.9 million users. “With the IPO plan, we can strengthen our business network. This creates opportunities for small retailers and many others in the digital ecosystem,” said Rachmat Kaimuddin, CEO of Bukalapak.

Bukalapak’s mobile app interface

Around the world, stock exchanges are racing in the context of the IPO boom. Indonesia has a stock market value of about 450 billion USD, surpassing even Singapore. Indonesia also eased IPO conditions, although still losing money, but attracted many investors’ attention. Bukalapak conducts the IPO when many Southeast Asian startups are also preparing to list. Grab will list on the stock exchange this year. This IPO will be done after merging with a SPAC valued at nearly $40 billion.

Sources of information include Bloomberg and Reuters.