IDX’s profile to change as Indonesia’s biggest tech startups plan IPOs

Photo: Ruben Sukatendel/ Unsplash.com

The IPO (initial public offering) pipeline in Indonesia is looking robust, as a host of technology startups are looking to make their public market debut over the next few months.

Among those in the fray are e-commerce company Blibli, a subsidiary of local conglomerate Djarum Group; and East Ventures-backed micro-retail tech startup Warung Pintar, said multiple sources familiar with the companies’ listing plans.

Along with the likes of Bukalapak, which listed earlier this year, and GoTo, which is eyeing an IPO next year, the startups are expected to change the composition of the Indonesia Stock Exchange. The IDX is now mostly dominated by traditional companies like banks and manufacturers.

Indonesia has led the IPO market in Southeast Asia for the past three years running, based on the number of transactions. In 2020, there were 51 listings across its three boards, dominated by the traditional consumer business, real estate, and financial services sectors, noted Deloitte in its regional IPO report.

There are also ongoing efforts by the government to push state-owned enterprises to list

Both Blibli and Warung Pintar are seeking to list on the Indonesia Stock Exchange (IDX) as early as next year.

The issue sizes that the companies are looking at, however, could not be ascertained.

While Blibli has engaged bankers including Morgan Stanley to facilitate the listing process, Warung Pintar’s plans are still at a preliminary stage, sources added.

“Blibli is always open for the best options, which can accelerate our ecosystem development in providing innovative solutions for our consumers time after time,” said a company spokesperson in response to DealStreetAsia’s queries.

“For Blibli, the most important thing is the continuation process, so that it not only survives, but also continues to grow and make a positive impact for the consumers, business partners, and also for the advancement of Indonesia in every sector possible.”

A Warung Pintar spokesperson said: We’re not confirming anything yet at this moment regarding the IPO.”

As the startup ecosystem in the archipelago matures, listing comes naturally as an option, said observers tracking the sector. While capital can be raised from investors, tapping the public markets can help take companies to the next level, while improving corporate governance.

Earlier this year, e-commerce behemoth Bukalapak made a stellar debut on the IDX, thereby becoming a bellwether for technology startups seeking to list in the country. It raised a whopping $1.52 billion in its IPO, which was five times more than the original target of just $300 million.

However, Bukalapak’s share price has since fallen significantly, as retail investors sell to take profits.

Its shares closed at Rp 695 on Friday, 18% lower than its IPO price of Rp 850.

In another high-profile, highly-anticipated listing in Indonesia, GoTo is expected to make its debut on the IDX early next year.

The company recently made headlines for signing an agreement with a wholly-owned unit of Abu Dhabi Investment Authority (ADIA) to raise $400 million. Its overall target is to garner $1.5-2 billion in funding in its pre-IPO round.

Separately, Grab’s proposed public market debut in the US could also trigger a flood of listings in Southeast Asia, the fast-growing consumer market of 650 million people.

The ride-hailing giant is understood to be on “on track” to complete its merger with Altimeter Growth Corp, a SPAC, that pegged its valuation at nearly $40 billion.

Keen yet cautious

According to industry observers, the recent regulatory procedures could prompt e-commerce players to be cautious in their listing plans.

For one, GoTo was earlier targeting to launch its IPO in Indonesia by year-end, followed by a US listing.

“Startups are likely to list only after Q1 2022… they will first want to see GoTo’s performance,” said an analyst.

Still, an IPO for a company like Blibli should work, as it already has a significant local presence, and is backed by major investors.

Blibli, whose parent Djarum Group is the producer of nearly one-fifth of cigarettes manufactured in Indonesia with estimated annual revenues of $4.6 billion, is unlikely to need further risk capital.

Warung Pintar, established its presence in 2017 as a prefabricated kiosk with technology integration for Indonesian SMEs and mom-and-pop stores.

Currently, it operates four lines of business: the Warung Pintar app, a marketplace for warung owners; Grosir Pintar app, which enables wholesalers to track their goods; Warung Pintar Distribusi, which provides warehouses; and Bizzy Connect, which allows large-scale distributors to have better retail visibility with supply chain prediction.

So far, Warung Pintar has raised a total of $35.5 million in funding. It counts OVO, SMDV, Vertex Ventures, Pavilion Capital, Line Ventures, Digital Garage, Agaeti, Triputra, and Jerry Ng among its investors.

The startup ecosystem in Indonesia saw its first listing in September 2017 when e-commerce company Kioson Komersial Indonesia tapped the bourses to raise $3.3 million in fresh funds. It was followed by digital kiosk startup MCash, which raised $22 million in the month of November.

Others who have launched their IPO in the past are digital exchange platform NFC Indonesia, homegrown travel tech startup Yeloo Integra Datanet, or Passpod as it is better known, and digital business accelerator Diva Indonesia, among others.

Cindy Silviana is contributed to this article

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.