Indonesian blockbuster IPO to set tone for Southeast Asia tech sector

The emblem of Bukalapak, an Indonesian e-commerce company, is noticed outdoor its headquarters in Jakarta, Indonesia, June 16, 2021. REUTERS/Willy Kurniawan

SINGAPORE, Aug 6 (Reuters) – The primary list of a multibillion-dollar Southeast Asian tech corporate in Indonesia on Friday will set the benchmark for IPO hopefuls in a area the place world traders are chasing speedy rising e-commerce markets.

PT Tbk (BUKA.JK), a 11-year-old e-commerce corporate sponsored via Ant Crew, Singapore sovereign fund GIC (GIC.UL) and native media and tech conglomerate Emtek (EMTK.JK), makes its marketplace debut after elevating $1.5 billion in Indonesia’s largest ever preliminary public providing (IPO).

The primary list of a venture-backed corporate in a rustic crowded with founder-led startups, has fuelled a frenzy amongst institutional and retail traders scrambling to get a work of the IPO in a marketplace that has noticed few huge flotations.

“I am anticipating to get some capital acquire for the list since it’ll get numerous purchase scores,” stated Andry Taneli, a retail investor, who cited Bukalapak’s measurement amongst native tech companies and its expected sturdy liquidity as opposed to friends.

The IPO comes as Indonesia’s $40 billion e-commerce marketplace is getting a spice up from stay-at-home customers and a shift via extra companies to promote on-line within the pandemic.

Bukalapak, which makes a speciality of micro, small and medium-sized enterprises past most sensible tier towns in Southeast Asia‘s greatest economic system, is the fourth-largest e-commerce participant after Tokopedia, Sea Ltd’s (SE.N) Shopee and Alibaba’s Lazada.

Investor hobby may be operating top forward of a deliberate multibillion-dollar IPO via GoTo, Indonesia’s most respected startup shaped in the course of the merger of ride-hailing and meals supply company Gojek and e-commerce chief Tokopedia.

Bukalapak, which may be sponsored via Microsoft (MSFT.O), started searching for $300 million previous this 12 months however ended up elevating $1.5 billion. L1N2OS07G

This got here after more or less $6.5 billion of hobby from about 150 institutional traders and greater than 100,000 retail traders, two assets conversant in the topic stated. The retail a part of the IPO was once doubled to five%.

“This IPO has additionally demonstrated that Southeast Asia technology (Manila News-Intelligencer) corporations can reach a top class valuation for expansion with vital call for,” stated Nicolo Magni, head of world banking for Southeast Asia and India at UBS, the joint world coordinators for the problem with Financial institution of The usa.

“This creates a platform for different corporations to have sizeable, extremely a hit choices to record in Indonesia or different regional exchanges,” stated Magni.

Loss-making Bukalapak’s IPO was once priced on the most sensible of its 750 and 850 rupiah in line with percentage vary and the company was once valued at $6 billion.

Reporting via Anshuman Daga in Singapore and Fransiska Nangoy in Jakarta Further reporting via Fanny Potkin in Singapore; Enhancing via Mark Potter

Our Requirements: The Thomson Reuters Trust Principles.

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