Indonesia’s Largest IPO Turns Into a Flop as Bukalapak Falls


PT has lost more than half its value since raising $1.5 billion in Indonesia’s biggest public offering.

The shares closed at a record low 352 rupiah on Tuesday, pushing its market value below 37 trillion rupiah ($2.6 billion). That’s down 66% from the 109 trillion rupiah market cap recorded on its first trading day in August. The stock ended a seven-day losing streak to jump 5.1% to 370 rupiah on Wednesday.

The IPO flop may not bode well for upcoming tech listings that are expected to propel the local stock market to another year of record deals. Indonesia’s largest tech startup GoTo and Blibli, an e-commerce platform backed by Djarum Group, both plan to go public in 2022.

Investors will likely focus on tech companies that would be able to report positive earnings within three to six months after their IPO, said Rudiyanto, a director at Panin Asset Management.

The worsening sentiment may be specific to Bukalapak. Changes in management due to its chief executive officer leaving to join the public sector could be a cause for concern, said BRI Danareksa analyst Niko Margaronis. Compared to Bukalapak, companies like GoTo have a larger base of potential users and stronger links with retailers, while Blibli has the backing of the Djarum conglomerate, he added.

RHB sees Bukalapak’s current price as “already very cheap,” considering it has up to 19 trillion rupiah in IPO proceeds to invest, as well as a sizable stake in digital lender PT Allo Bank Indonesia, said Michael Wilson Setjoadi, analyst at RHB Research. His target price is 1,300 rupiah.

“It’s a process, people have to start appreciating the internet economy growth even though they are loss-making,” Margaronis said.

Bukalapak’s key shareholders included Singapore’s GIC Pte and Archipelago Investment Pte, which held a combined 11% stake in the company as of August, while PT Elang Mahkota Teknologi’s unit had a 23.9% stake.