Microsoft-backed Bukalapak plans Indonesia IPO by August

With additional reporting from Aditya Hadi.

Bukalapak, a Jakarta-based ecommerce firm backed by Microsoft, is set to list on the Indonesia Stock Exchange (IDX) as early as August, a source with the knowledge of the matter told Tech in Asia.

Bukalapak CEO Rachmat Kaimuddin / Photo credit: Bukalapak

DealStreetAsia was the first to announce Bukalapak’s plan to do an initial public offering.

The size of the public listing, however, remains unknown. The IDX mandates all listed companies to have a minimum free float ratio of 7.5% in order to boost market liquidity and increase trade volume on the bourse.

The move comes as the Bukalapak is reportedly preparing for a US listing by merging with a special purpose acquisition company (SPAC), which could lift its value to about US$4 billion to US$5 billion.

The ecommerce company could raise a minimum of US$255 million in its Indonesian trading debut. Mandiri Sekuritas and UBS will be appointed as underwriters for the public listing.

“We always explore opportunities to grow and develop financially. However, we haven’t made any decision. Our focus is to find the right strategy for becoming a sustainability company and create added value for partners and users in the future,” the company said in response to Tech in Asia‘s query regarding the matter.

Last month, Bukalapak raised US$ 234 million in a round of funding led by US tech titan Microsoft, Singapore’s sovereign wealth fund GIC, and Indonesian media conglomerate Emtek.

Earlier in November 2020, Microsoft and Bukalapak inked a partnership deal worth US$100 million. Under the agreement, the ecommerce player will adopt Microsoft Azure as its cloud platform.

Bukalapak joins the IPO rush in Asia, where companies have caught up to their global peers this quarter to hit their best first quarter for listings to date. This was fueled by high liquidity during the Covid-19 pandemic, low interest rates, and resurging stock markets.

See also: The leading Asian tech players eyeing an IPO in 2021

The company’s archrival Tokopedia recently merged with Indonesian super app Gojek to form GoTo Group. The combined entity is planning a fresh round of fundraising this summer ahead of its IPO plan later this year, potentially becoming one of the most valuable technology companies in Southeast Asia.

Update (May 27, 10:22 p.m.): This story was updated to add Bukalapak’s response to its reported Indonesian IPO.