US $1.5 B raised by Bukalapak on the first day of its IDX debut, shares jump 25 percent
Bukalapak, an Indonesian e-commerce behemoth, debuted on the Indonesia Stock Exchange today, garnering US$1.5 billion in its first public offering (IPO).
The stock gained 25% from its initial offering price of IDR850 to IDR1,060 (US$1=IDR14,369).
The revenues from the IPO will be used to support the activities of Bukalapak’s holding company and subsidiaries.
Bukalapak CEO Rachmat Kaimuddin said in a press conference that the company is committed to sustaining its performance and assisting Indonesian MSMEs through its different services.
The company also wants to adopt a business plan that involves bolstering its “all-commerce platform” and collaborating with Mitra Bukalapak, an MSMEs that uses the platform.
It will also focus more on Indonesia’s tier two and tier three cities.
“We aim to create a fair economy for all,” Kaimuddin said.
Bukalapak started off as a C2C internet marketplace in 2010. The firm has dabbled with a variety of industries throughout the years, including finance and O2O e-commerce.
GIC and Microsoft are among the company’s backers, which helped it become a unicorn in January 2018. It’s also the archipelago’s first unicorn to go public, both domestically and internationally.
Given its status as a local firm with predominantly domestic interests, Bukalapak chose IDX to list its shares, according to Kaimuddin.
Bukalapak, on the other hand, isn’t the first firm to join the IDX. Kioson and MCash, two Indonesian digital firms, went public on the local exchange in 2017. On the first day, Kioson raised $3.3 million, whereas M Cash raised $22 million.
IDX commissioner Pandu Sjahrir discussed the organization’s aim to promote more Indonesian digital businesses to list on the stock exchange in an interview with e27 in June 2020.
“What we are doing here is deepening the demand, particularly by having more young investors on board. It is something that starts with education about the capital market,” Sjahrir said.
