Indonesian e-commerce firm Bukalapak has launched an up to $1.13 billion IPO ahead of next month’s listing.
This listing marks Indonesia’s biggest public issue in over a decade and signals an increasing investor appetite for tech stocks in the region boasting a growing consumer class, according to a report by Reuters.
Details of the IPO are currently being announced at an investor briefing, Reuters added.
The e-commerce company counts Singapore sovereign investor GIC and Microsoft among its backers, is set to be valued at $5.6 billion at the top end of a price range, doubling the company’s valuation from two years ago.
Recently, E-gogo Holdings Limited (“E-gogo”), a leading e-commerce enabler signed a Memorandum of Understanding (“MoU”) with the Hong Kong Trade Development Council (“HKTDC”) to help Hong Kong companies enter the Indonesian market via the e-commerce route.
Based on the e-Conomy Southeast Asia 2020 Report by Google, Temasek and Bain & Company, the Internet economy remains resilient at US$100 billion gross merchandise value despite the global slowdown.
A study by management consulting firm Redseer showed that the country’s e-commerce gross merchandise value (GMV) grew nearly 65 percent last year to US$37 billion, driven by an influx of new users as large-scale social restrictions (PSBB) compelled more Indonesians to shop online. The growth rate is expected to slow to about 40 percent this year with a 30 percent compound annual growth rate (CAGR) until 2025, according to the study.
The sector accounted for 20 per cent of total retail sales in 2020, a significant rise from only 2 per cent in 2016, according to a report by research firm Momentum Works. Homegrown marketplace Tokopedia and Sea Group’s Shopee are still at the forefront of the race to corner the country’s ecommerce sector.
The companies have widened their lead over other contenders such as Lazada, Bukalapak, Blibli, and JD.com Indonesia, according to Momentum Works.