Shares of Indonesia’s PT Bukalapak.com jumped by 25% on its trading debut with investors scrambling to get a piece of the action in the country’s first listed tech unicorn.
PT Bukalapak.com, which counts Singapore sovereign fund GIC Pte Ltd and Ant Group among its backers, has raised $1.5 billion in the Southeast Asian country’s biggest initial public offering (IPO).
In its market debut, Bukalapak’s shares surged to $0.0738 (1,060 rupiah) after touching the 25% threshold limit, after tens of thousands of investors bought its shares through online platforms such as Ajaib and Stockbit; institutional investors have also invested heavily in the IPO.
Bukalapak’s market debut has fueled excitement in the startup and investment sector and is expected to set the benchmark for IPO hopefuls in a region where global investors are chasing fast-growing e-commerce markets.
“This event will create a snowballing effect and show the path for more Indonesia listings,” said Willson Cuaca, a co-founder and managing partner at East Ventures.
Bukalapak’s IPO comes at a time when Indonesia’s $40 billion e-commerce market is getting a boost from coronavirus-induced lockdowns which forced consumers to stay at home and which has given traction to more businesses to sell more products online.
“Bukalapak’s IPO shows that there is a large and vibrant market for homegrown Indonesian unicorns,” said Antonio Puno, head of Southeast Asia corporate finance at Bank of America.
Incidentally, Bukalapak increased its IPO size in multiple rounds and received around $6.5 billion of interest from institutional and retail investors.
The retail part of its IPO was doubled to 5%.
($1 = 14,365.0000 rupiah)