Indonesian ecommerce firm Bukalapak launched a billon dollar IPO on Friday, the countrys biggest issue in more than a decade, as it taps into soaring investor demand for tech stocks.
Until just a few months ago, Bukalapak was looking to raise just 300 million. That grew to 800 million and this week it expanded the offer again, by 25, as investors clamoured for a piece of the company.
As the first tech unicorn to launch an IPO in Indonesia, the hype, especially from retail investors, is quite high, said Rudiyanto, a director at Panin Asset Management in Jakarta.
The countrys No.4 ecommerce company whose name means opening a kiosk in Indonesian is aiming to raise up to 1.13 billion by selling as much as 25 of its enlarged capital. It will market the shares between 750 and 850 rupiah apiece.
It is seeking a valuation of up to 5.6 billion, double the level two years ago, and is backed by Singapore sovereign investor GIC, Ant Financial, local media conglomerate Emtek and Microsoft.
Bank of America and UBS are the joint global coordinators and bookrunners with Mandiri.
The books for the IPO are open until July 19, when Bukalapak will price the shares. It is due to make its market debut on August 6.
The listing comes at a time when the pandemic has boosted demand in Indonesias 40 billion ecommerce market. Bukalapak has sought to focus on smaller clients as it competes with bigger rivals Tokopedia, Sea Ltds Shopee and Alibabas Lazada.
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