Indonesian online-to-offline (O2O) marketplace Bukalapak has officially started offering its shares to the public after completing its book building exercise on July 9-19.
During the public offering, on July 27-30, Bukalapak will offer 25.7 billion shares at Rp 850 ($0.059) per share. The company will list on the Indonesia Stock Exchange (IDX) on August 6 under the ticker BUKA.
The capital raised from the IPO will be deployed to meet working capital needs. Bukalapk said in a press release on Tuesday that 66% will be allocated to the parent company, while 34% will be for its subsidiaries, including PT Buka Mitra Indonesia (BMI), PT Buka Usaha Indonesia, PT Buka Investasi Bersama, PT Buka Pengadaan Indonesia, Buka Pte.Ltd., and PT Five Jack.
Bukalapak has also made two appointments in connection with its IPO. PT Mandiri Sekuritas and PT Buana Capital Sekuritas have been appointed as joint lead managing underwriters, while UBS AG Singapore and Merril Lynch (Singapore) Pte Ltd have been appointed as joint global coordinators and international selling agents.
Reuters had reported on July 21 that Bukalapak has raised $1.5 billion in its initial public offering, becoming the largest IPO ever in the country.
Besides the Emtek group, which is the largest shareholder, Singapore’s sovereign wealth fund GIC, and Alibaba’s Ant Group are stakeholders.
Like Tokopedia and Sea Ltd-owned Shopee, Bukalapak was established as an online marketplace in 2011. It forayed into the offline segment in 2016 when it launched a second app to empower mom-and-pop shops or warungs.
Called Mitra Bukalapak (Mitra), the app enables MSMEs, including warungs and agents, to sell virtual products like phone credit, data plans, electricity vouchers, and train tickets. Mitra also connects the end users to buy goods on the Bukalapak platform.
By 2020, Bukalapak registered 7 million Mitras, primarily located in Tier 2 and Tier 3 cities. The company claims to have a 39% share of the e-warung market.