Bukalapak officially kick-starts Indonesian IPO, offers shares at top end of price range

Photo: Bukalapak

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.

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.