Bukalapak aims to raise $1.5b via an IPO that’s set to become Indonesia’s largest

Ecommerce firm Bukalapak has officially announced that it set to list on the Indonesian Stock Exchange (IDX) on August 6 with the ticker symbol BUKA.

The Jakarta-headquartered company will offer more than 25.7 billion of its shares, representing 25% of its enlarged share pool. The price range is between 750 to 850 rupiah (around US$0.052 to US$0.058). It aims to raise up to US$1.5 billion in this initial public offering and targets a US$6 billion valuation.

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The impending IPO can become the largest in Indonesia, exceeding PT Adaro Energy’s lisiting, which raised around US$841.5 million in 2008.

Bukalapak saw a 26% revenue growth in 2020, roughly in line with Lazada’s during the same time span. In the first quarter of 2021, Bukalapak posted 423.7 billion rupiah (around US$29 million) in revenue – an increase of 32% from the same quarter last year.

See also: 9 highlights from Bukalapak’s confidential investor deck

The company will use 66% of the money raised for Bukalapak’s working capital, while another 15% will go to its Mitra business, which works with offline microretailers to digitalize their offerings and address pain points in their businesses. The company says that the Mitra arm has acquired 8 million warungs, or 39% of the total e-warung segment.

After the new shares are issued, Bukalapak founders Achmad Zaky, Fajrin Rasyid, and Nugroho Heru Cahyono, who have all left the company, will hold 4.32%, 2.64%, and 2.08% stakes, respectively.

If Bukalapak hits a US$6 billion post-money valuation, Zaky’s stake could be worth US$259 million.