Can Blibli defy odds to breathe life into the IPO market?

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Hello reader,

I wasn’t familiar with Blibli until news of its upcoming IPO broke last week. 

My first thought was: “Why now?”

I was also surprised to learn that Blibli might be valued at US$3.5 billion, which would make it twice as big as Bukalapak by market value. 

If, like me, you’re not familiar with Blibli, then my colleague Jofie’s premium story is a good introduction to the company’s numbers and its competitive position in Indonesia. 

It may also answer the question of why the company plans to go public now despite gloomy market conditions. 

Indonesian investors who bought into Bukalapak and GoTo have, alas, not been rewarded so far. So far this year, shares of the local tech champions are down 39% and 45%, respectively. Will the third time be the charm? 

In the short term, much depends on how the IPO is priced and whether macroeconomic conditions improve in the following months. In the long run, Blibli will have to demonstrate that it can build on its niche to grow profitability, despite being far smaller than competitors like Shopee and Tokopedia. 

One major factor may be whether the company can effectively leverage the ecosystem of its main backer, Indonesia’s Djarum Group. 

In the featured piece, Djarum is described as a “strong backer” to have. However, Jofie also looks at other links between Blibli and the conglomerate that may not be viewed as positively by potential investors. 

We will be sure to track the Blibli listing closely and continue to share our thoughts and insights! 

— Simon

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