Indonesian e-commerce company Bukalapak launched its initial public offering on the Indonesia Stock Exchange, or IDX, on Friday, trading under the ticker symbol “BUKA.” The company is offering around 25.7 billion shares at IDR 850 per share. This would raise around IDR 21.9 trillion (USD 1.5 billion) for Bukalapak and make it the largest public stock offering ever in the country.
Bukalapak underwent its book-building process and roadshow in mid-July, with a public offering later in the month. It was well received by domestic and international investors, according to a press statement issued by the company. Total orders reached IDR 4.8 trillion (USD 333.9 million). Bukalapak increased its share allocation for retail investors from 2.5% to 5% of the total available orders, or from IDR 547.5 billion to IDR 1.1 trillion (USD 38 million to USD 76.5 million)
“Bukalapak’s share offering, through the pooling allotment, was oversubscribed by about 8.7 times, with orders from nearly 100,000 investors,” said Silva Halim, president director of Mandiri Sekuritas, which acted as joint lead for the underwriters, in a statement.
Bukalapak was founded in 2010 by Achmad Zaky, Muhamad Fajrin Rasyid, and Nugroho Herucahyono. The company is currently led by president director Rachmat Kaimuddin. The firm’s backers include Emtek Group, Mirae Asset-Naver Asia Growth Fund, Microsoft, and Singapore’s GIC.
Based on the company’s prospectus, Bukalapak currently holds 14.8% market share in Indonesia’s e-commerce sector, with approximately 104.9 million registered users. The firm has seven subsidiaries, including investment arm Buka Investasi Bersama and B2B marketplace Buka Pengadaan Indonesia.
Last year, the company posted a net loss of IDR 1.34 trillion (USD 93.3 million), down from IDR 2.8 trillion (USD 195 million) in 2019. Bukalapak racked up net sales to the tune of USD 1.35 trillion (USD 94 million) in 2020, a nearly 26% increase from the previous year, and a 360% increase from 2018’s figure of IDR 291.9 billion (USD 20.3 million).
Bukalapak is the third most popular e-commerce platform in Indonesia, with an estimated 34.1 million monthly visits. The firm is aggressively expanding in tier-2 and tier-3 regions, where digital adoption is slower than metropolitan locales. Its total processing value (TPV) was USD 6 billion as of December 3, 2020, and 70% of transactions come from cities outside of tier-1 areas.
Moreover, its Mitra Bukalapak program, which digitizes the operations of micro-retail stores and warung neighborhood kiosks, accounted for 27% of the firm’s overall TPV. It had 6.9 million registered micro-retail partners as of December 2020.