* Bukalapak surges to daily limit of 25% on investor fervour
* Raises $1.5 bln in Indonesia's biggest IPO
* Upsized IPO was oversubscribed more than 4 times
* Company seeks growth from booming e-commerce market
* Indonesia emerging as tech battleground in region
JAKARTA, Aug 6 (Reuters) - Shares in Indonesia's first
listed tech unicorn, PT Bukalapak.com soared 25% on
their market debut on Friday as investors scrambled to get a
piece of the country's fourth-largest e-commerce company in a
Bukalapak shares closed at 1,060 rupiah ($0.0738) after
reaching the 25% limit minutes after opening, with tens of
thousands of investors buying shares on online platforms such as
Ajaib and Stockbit, after the firm raised $1.5 billion in
Indonesia's biggest IPO, valuing it at $6 billion.
"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, an
Indonesia-focused venture capital firm.
The listing by the decade-old e-commerce platform, whose
backers include Ant Group and Singapore sovereign fund GIC, has
fuelled excitement in the thriving startup community, in a
region that is home to more than 400 million internet users.
The IPO comes as Indonesia's $40 billion e-commerce market
is getting a boost from stay-at-home consumers and a shift by
more businesses to sell online during the pandemic.
"We initially ran a non-deal roadshow for 10 days in a row
and I was literally having 11-12 meetings every day from 8 till
11 at night and these had to get extended as there was so much
more interest," Bukalapak's president, Teddy Oetomo, a former
banker, told Reuters in an interview.
He likened Bukalapak's business to Canadian e-commerce
company Shopify, which also works with
Investor interest is also running high ahead of a planned
multibillion-dollar local IPO by GoTo, Indonesia's most valuable
startup formed through the merger of ride-hailing and food
delivery firm Gojek and e-commerce leader Tokopedia.
Southest Asian ride-hailing leader Grab is going public
through a $40 billion merger with a U.S. special-purpose
Bukalapak's stellar debut, which follows a string of recent
eye-popping listings in Asia, vaulted Bukalapak's market value
to $7.5 billion, placing it among Indonesia's 15 biggest
On Friday, South Korean digital lender Kakao Bank
surged 79% on its debut to be valued at $29 billion.
"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, the
joint global coordinators for the issue with UBS.
The company, which also counts Microsoft and local
media and conglomerate Emtek Group among its backers,
reported a 26% revenue increase to $96 million in 2020, up 26%
on the year. Registered users stood at 105 million.
Bukalapak, which means "open stall" in Bahasa, works with 7
million agents, or "mitra", primarily street kiosks and
mom-and-pop shops, who it connects to consumer goods
distributors, narrowing their supply chain and the costs of
It focuses on areas outside top-tier cities in the
archipelago, and ranks behind Tokopedia, Sea Ltd's Shopee
and Alibaba's Lazada in the e-commerce segment in terms
of market share and gross merchandise value.
Bukalapak increased its IPO size in multiple rounds and
received roughly $6.5 billion of interest from institutional and
retail investors. The IPO retail segment was doubled to 5%.
Two sources familiar with the matter said the firm had
priced its IPO at an enterprise value to sales multiple of 16
times based on next year's estimated sales.
"This IPO has also demonstrated that Southeast Asia
technology companies can achieve a premium valuation for growth
with significant demand," said Nicolo Magni, head of global
banking for Southeast Asia and India at UBS.
"This creates a platform for other companies to have
sizeable, highly successful offerings to list in Indonesia or
other regional exchanges."
($1 = 14,365.0000 rupiah)
(Reporting by Anshuman Daga,Fanny Potkin and Fransiska Nangoy;
Editing by Ed Davies, Stephen Coates and Emelia