Bukalapak is Reportedly Going to IPO on IDX This August

E-commerce startup, Bukalapak, is rumored to be listing its initial stock alias IPO in early August. The Unicorn is also said to be studying a merger with a special purpose acquisition company (SPAC).

“DealStreetAsia for the first time reported that Bukalapak plans to take the floor on the Indonesian stock exchange. It will be listed on the IDX in early August,” said a source with knowledge of the matter, quoted from Tech In Asia, Thursday (27/5).

Reportedly, Mandiri Sekuritas and UBS will be appointed as underwriters for the public listing. The move was taken when Bukalapak was reportedly preparing an IPO on the United States (US) stock exchange through SPAC or a blank check company.

If this happens, the unicorn’s valuation is said to be around US$ 4 billion to US$ 5 billion. Bukalapak representative did not comment on the news of the IPO in early August.

“We continue to explore opportunities for companies to continue to grow and develop financially. However, for now, we have not made any decisions,” he said, Thursday night (27/5). He also did not respond to the news about the merger with SPAC to take the floor on the US stock exchange.

“Our focus now is to continue to find the right strategy to become a sustainable company and create added value for partners and users for the future,” he said. Last month, Bukalapak reportedly received an investment of US $ 234 million or around IDR 3.4 trillion.

This funding round was led by three investors; Emte, Microsoft, and Singapore’s GIC sovereign wealth fund. Other investors involved in the funding include SC Ventures and the South Korean web portal Naver Corp.

Cooperation with Microsoft is able to Support Bukalapak

In November 2020, Microsoft and Bukalapak signed a $ 100 million partnership agreement. Through this collaboration, the two of them collaborated on three initiatives. To build a strong infrastructure is the first goal, one of which is cloud computing (cloud) from Microsoft Azure.

Second, bridging the digital divide. Lastly is to provide digital skills training for Bukalapak employees and traffickers.

The company is optimistic that the technology will support the company serving each of the six million online Micro, Small, and Medium Enterprises (MSMEs) partners and stalls, as well as 100 million customers.

In January, the unicorn also reportedly received US$ 200 million or around IDR 2.8 trillion in funding from Standard Chartered Plc.

“The former investor, Mirae Asset-Naver Asia Growth Fund and Naver Corp are also close to signing an agreement for additional funding,” said a Bloomberg source with knowledge of this, quoted on January (14/1).

Although he did not confirm the news of the funding, the Bukalapak CEO said that Standard Chartered’s participation would further strengthen the ranks of shareholders and strategic partners.

Positive Impact on Mutual Funds

The prospect of having startups such as GoTo and Bukalapak on the Indonesian stock exchange floor can have a positive impact on the performance of equity funds this year.

President Director of PT Pinnacle Persada Investama Guntur Putra assessed that the potential and prospects for share-based mutual funds in Indonesia are still quite good and attractive this year.

It is targeting a potential revenue recovery from listed companies in semester II / 2021 which will boost the performance of the Composite Stock Price Index (IHSG).

On the other hand, another positive catalyst comes from technology companies that plan to take the floor on the stock exchange this year. Guntur said, the presence of startups such as GoTo, Bukalapak, and others will increasingly enliven the Indonesian market.

“In terms of the vaccination program in Indonesia, it is still fairly on track and the progress is also quite good,” he said when contacted on Thursday (27/5/2021).

Meanwhile, Guntur said that his party uses active and passive strategies for stock-based mutual fund products. For active equity funds, his party implements a quantitative strategy that prioritizes risk management in management.