Bukalapak's value plummets five months after IPO

Indonesian eCommerce portal Bukalapak has lost over half of its value since its initial US$1.5 billion offering. According to Bloomberg, Bukalapak's shares closed at US$0.02 yesterday and this resulted in a market value below US$2.6 billion - a 66% dip from the US$7.6 billion cap recorded when it first listed in August last year. 

Bloomberg reported Panin Asset Management's director Rudiyanto stating that due to this, investors may be likely to focus on tech companies that will be able to report positive earnings within three to six months after their IPO. 

Bukalapak bagged a US$234 million funding last April, led by Microsoft, GIC, and Indonesian media conglomerate Emtek, according to Reuters. Bukalapak's latest funding round was also said to include Standard Chartered's investment arm SC Ventures, as well as South Korean tech company Naver, Reuters added. Its chares jumped by close to 25% its first day of listing, from US$0.06 to US$0.07, CNBC reported. As investors piled into the IPO, the sharp jump in share price triggered the Indonesia Stock Exchange’s auto rejection mechanism - which rejects further increases in share price once the stock hits the upper limit. 

Bukalapak had also reportedly planned to eventually establish a special purpose acquisition company (SPAC) in the United States, following its listing in Indonesia.  According to Bloomberg's sources, changes in Bukalapak's management following its CEO's departure to the public sector could have been a cause for concern which led to the results. 

Nonetheless, Bukalapak's short-lived success does not set a great precedent for upcoming Indonesia listings.  For instance, Indonesian eCommerce platform Blibli, a subsidiary of Djarum Group, signed an agreement in September last year to acquire a majority stake in publicly listed supermarket operator Supra Boga Lestari (SBL) as it pursued a back-door listing. Blibli said in a statement that it will buy around 797.88 million shares from existing shareholders. While it did not disclose the deal value, the shares represent at least 51% of the total issued and paid-up capital of SBL, according to Nikkei Asia.

GoTo Group, formed following a merger between Gojek and Tokopedia in May last year, also raised more than IDR 18.6 billion in pre-IPO fundraising in November 2021. The funding would allow it to invest further in its ecosystem, strengthen its market-leading position in the region and better serve customers. This includes continued focus on customer growth and engagement, expansion of its payments and financial services offering, and leveraging its integrated transport fleet and logistics network to enhance hyperlocal experiences.

Both companies will be listed this year.

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Bukalapak reportedly bags US$234m funding, looks to list in Indonesia