Bukalapak will become the country’s first unicorn to list on the Indonesian Stock Exchange, or IDX, when its shares begin trading on August 6. The company will issue 19.3 billion shares at IDR 750–850 (USD 0.052–0.058) apiece, expecting to raise up to IDR 21.9 trillion (USD 1.5 billion). An over-allotment option exists for a sum of more than 25.7 billion shares. This could shape up to be IDX’s largest ever IPO.
Founded in 2010, Bukalapak’s e-commerce marketplace trails behind Tokopedia and Shopee in visitor traffic, but the company claims to be the “dominant e-commerce platform beyond tier-1 regions” and the “number one mitra network in Indonesia,” according to a presentation given to IDX in June. In all, 70% of its USD 6 billion purchase volume for 2020 took place beyond major cities. Bukalapak recorded a loss of IDR 168 billion (USD 12 million) in 2020, the company said in the presentation.
E-commerce is on the rise in Indonesia. During soft lockdowns in 2020, online spending climbed 11% to hit USD 44 billion. By 2025, that amount could rise to USD 124 billion, according to a report published by Google, Temasek, and Bain & Company.
Bukalapak’s strategy may pay off in the long run, as millions of new users are expected to come online in rural areas for the first time in coming years, while President Joko Widodo has pledged to provide access to technology and capital to this segment of Indonesia’s population.
The company counts Indonesian state investors as stakeholders. These include BRI Ventures and Mandiri Capital, which are the VC arms of Indonesia’s largest banks, Bank Rakyat Indonesia (BRI) and Bank Mandiri. Microsoft, Singapore sovereign wealth fund GIC, and Indonesian conglomerate Emtek also hold shares.
Bukalapak’s ticker symbol will be “BUKA.”