“The company is expecting to raise $300 million, but it is likely to increase the target if the demand [from investors] is high,” said one of the sources.
Bukalapak is understood to have roped in Indonesia’s Mandiri Sekuritas and UBS AG as underwriters for the local listing. In addition, the e-commerce company has tapped Merrill Lynch to explore a potential US listing, potentially via a merger with a special purpose acquisition company (SPAC).
According to a Bloomberg report in March, a SPAC merger could value Bukalapak at $4-5 billion. Bukalapak is understood to be valued at $3.4 billion currently.
A Bukalapak spokesperson declined to comment for this story. DealStreetAsia’s queries sent to UBS had not elicited any response at the time of publishing this report.
Meanwhile, Bukalapak’s largest shareholder Emtek Group confirmed DealStreetAsia’s recent report that the firm is targeting a listing in August 2021. “If the filing process with the IDX and OJK (Financial Services Authority) goes well, it will have the IPO in August this year,” said Titi Maria Rusli, the corporate secretary of Emtek group in an interaction with journalists on Thursday.
Emtek Group — a technology, media, and telecom conglomerate — is Bukalapak’s largest shareholder with a 31.9% stake held through its subsidiary PT Kreatif Media Karya. Emtek’s presence on Bukalapak’s cap table throws the door open to possible collaborations with the Southeast Asian ride-hailing decacorn Grab Holdings.
In March this year, Grab, which is on the verge of listing in the US via a SPAC deal, had picked up a 4.6% stake in Emtek as first reported by DealStreetAsia. Grab’s investment was part of a private placement led by South Korea’s NAVER Corporation, where Emtek raised 9.3 trillion rupiah ($634.66 million).
While the two companies haven’t decided on any synergy or collaboration yet, Grab’s stake purchase will bring the two firms closer, Sutanto Hartono, Emtek’s managing director had said at the time of Grab’s investment.
Emtek is also a backer in the Indonesian digital wallet DANA. Talks of a merger between DANA and OVO, part-owned by Grab, have been doing the rounds for over a year.
Grab’s possible collaboration with Bukalapak in e-commerce can help it throw its weight at GoTo, the entity that was formed recently from the merger of Indonesia’s homegrown ride-hailing unicorn Gojek and e-commerce firm Tokopedia.
The Emtek Group also holds a 2.8% stake in Grab’s Indonesia unit, DealStreetAsia had reported recently.
Bukalapak’s cap table
Next to Emtek, the biggest shareholders in Bukalapak are API (Hong Kong) Investment Limited (17.4%) and Singapore sovereign wealth fund GIC through its subsidiary Archipelago Investment Pte Ltd (12.6%).
Together, the top three shareholders account for 61.9% of the company’s total shareholding, showed a recent filing by the company before Indonesia’s Directorate General of Administration of General Laws.
Also on the cap table of Bukalapak is Microsoft, which made a strategic investment in the company in November last year.
Bukalapak had raised $234 million in new capital in a funding round led by GIC, Emtek, and Microsoft in April.