Rachmat Kaimuddin, Bukalapak.com's president director. (Photo courtesy of Bukalapak.com)

Bukalapak Soars in Market Debut


AUGUST 06, 2021

Jakarta. Bukalapak.com, an Indonesian e-commerce giant, has seen its share price jump 25 percent in its debut on Indonesia Stock Exchange on Friday, with investors seeking to get their hand on the first Indonesian listed unicorn. 

The company's shares last traded at Rp 1.060 apiece at the market lunch break, rising 24.7 percent from its initial public offering (IPO) price of Rp 850. The exchange, also known as IDX, caps daily share price increases to 25 percent. 


Bukalapak managed to raise Rp 21.9 trillion ($1.5 billion) from selling 25 percent of its enlarged capital in an IPO that was oversubscribed by roughly 8.7 times. The offering attracted more than 100,000 investors, a new record for an IPO of a single company in the IDX. 

“Bukalapak successfully went through this IPO process and was very well received by domestic and international investors," Silva Halim, acting president director of Mandiri Sekuritas, the joint lead managing underwriter for Bukalapak’s IPO, in a written statement on Friday. 

Nomura Sekuritas Indonesia wrote in a note to clients that there were a strong "fear of missing out" (FOMO) sentiments among retail investors, especially among millennials. "BUKA is a logical investment choice. Buy with a target price of Rp 1,620," Nomura's analysts Nicholas Santoso, Sandy Ham, and Raymond Kosasih wrote in the note. 

Rachmat Kaimuddin, Bukalapak.com's president director,  said that although the IPO was done in the midst of the Covid-19 pandemic, interest in Bukalapak's shares remained high.

This reflects the investor’s trust in Bukalapak, a company that empowers MSMEs, the main driver of the Indonesian economy and the key to Indonesia's economic potential.

"Through this IPO, Bukalapak believes that we can push the growth of MSMEs to the next level," he said.

The company said it would use the proceeds from the offering as working capital for Bukalapak and its subsidiaries to invest in products and services to improve performance, profitability, and sustainability.

Bukalapak had a book building and roadshow on July 9-19, followed by a public offering on July 27-30. Being the first IPO of an Indonesian unicorn, the offering generated enough buzz that attracted orders worth Rp 1.8 trillion from individual investors. 

As a result, Bukalapak doubled the pooling allocation portion for retail investors to 5 percent of all total available orders. Thus, the value of shares allocated for the pooling allocation for retail investors increased from Rp 547.5 billion to around Rp 1.1 trillion.

Bukalapak's US$ 1.5 billion IPO is the largest throughout the history of the Indonesian capital market, beating out the previous record of $849 million held by the country's second-largest coal miner, Adaro Energi, in 2008. It was also the first share listing by a tech unicorn on the Southeast Asian stock exchange.