Indonesia’s Bukalapak looks to raise up to $1.5b in IPO, could be largest in IDX history

Mitra Bukalapak agent. courtesy by Bukalapak

Indonesian marketplace Bukalapak is looking to raise between $1.3 billion and $1.5 billion in its initial public offering on the Indonesia Stock Exchange (IDX), the company said in a disclosure advertised in the local press on Friday.

The share sale would be the biggest in the history of the IDX and also mark the first public listing of an Indonesian unicorn. Domestic peer GoTo, formed after the merger of Gojek and Tokopedia in May, had said it would pursue a dual-listing by the end of this year in the US and Indonesia.

Meanwhile, Singapore-registered Grab, which has opted for the SPAC route, recently postponed its Nasdaq listing to meet regulatory compliances.

Bukalapak will issue 25.76 billion new shares, or 25% of paid-in and issued capital. The offer price has been set at between 750 rupiah and 850 rupiah per share, according to the prospectus.

The IPO will be conducted on three days from July 28-30, and shares of Bukalapak will start trading on IDX from August 6.

DealStreetAsia had reported recently that three of the company’s top shareholders own over 60% of the shares. Bukalapak’s cap table has as many as 47 investors.

PT Kreatif Media Karya (KMK), an Emtek Group subsidiary, holds the biggest stake at 31.9% in Bukalapak, followed by API (Hong Kong) Investment Limited that owns 17.4%, and Singapore’s GIC, through its subsidiary Archipelago Investment Pte Ltd, which owns 12.6%.

After issuing the new shares, the stakes of these existing shareholders will get diluted.

KMK will hold 23.93%, while Ant Financial’s API (Hong Kong) Investment Limited will hold 13.05%. GIC’s stake will fall to 9.45%.

Stakes of the co-founders will also get diluted. While Achmad Zaky’s stake will fall from 5.76% to 4.32%, Fajrin Rasyid will hold 3.53% post-IPO, compared with 2.64% currently. Nugroho Heru Cahyono’s stake will fall from 2.78% to 2.08%.

Similarly, Microsoft’s stake will fall to 0.9% from 1.21%, and that of Mirae Asset Naver Asia Growth Investment from 2.4% to 1.8%.

Mandiri Sekuritas, Buana Capital Sekuritas, UBS Sekuritas Indonesia and Mirae Asset Sekuritas Indonesia are the underwriters for the IPO.

Losses narrowed in 2020, and other financials

The prospectus showed that Bukalapak’s losses narrowed in 2020. Last year, the company posted a net loss of 1.349 trillion rupiah ($92.66 million), compared with 2.8 trillion rupiah ($191.99 million) in 2019.

Net sales in 2020 stood at 1.35 trillion rupiah, a nearly 26% increase from the previous year and a nearly four times increase from 2018’s figure of 291.9 billion rupiah.

The narrowing net loss signals higher efficiency on marketing and sales expenses. In 2020, the company started a cash efficiency strategy amid the pandemic, and also decreased spends on subsidising, and promotions, both offline and online.

The marketplace segment was the largest contributor to Bukalapak’s revenue at 75% of the total, or 1.03 trillion rupiah in 2020.

The company’s total consolidated liabilities as of Dec 31, 2020, stood at 981 billion rupiah, a year-on-year increase of 9.72%.

It was driven by the implementation of lease accounting (PSAK 73). Consolidated lease liabilities of 68 billion as of Dec 31, 2020, and an increase in other payables to related parties also contributed to the increase in overall liabilities.

Expand Table

Assets, liabilities, and equities of Bukalapak

 2018201920202021
(as of 31 March)
Total assets3.0682.0532.5932.751
Total liabilities1.108.898.985
1.045
Total equities1.9591.1551.6071.705
All figures in trillion rupiah

The Bukalapak IPO comes at a time when the appetite for stock investing and trading is increasing in Indonesia, as noted in DealStreetAsia’s recent DATA VANTAGE report.

Helped by rising financial literacy and digitalisation, more Indonesians are starting to allocate capital to the public market. In just five years, the total number of investors registered with the Central Securities Depository (KSEI) grew nine times to 3.9 million in 2020. By the end of May, the number had grown to 5.4 million. Of these, 4.7 million are mutual fund investors, while 2.4 million invest in stocks directly.

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.