Blibli’s owner to debut in Jakarta’s 2nd-largest IPO of 2022

PT GLOBAL Digital Niaga, the owner of Indonesia’s e-commerce group Blibli, will start trading on Tuesday after raising 8 trillion rupiah (RM2.42 billion) in the country’s second-largest IPO this year.

It sold about 17.8 billion shares at 450 rupiah each, the top of a marketed range in an upsized offering in October. It’s the largest listing in Jakarta since PT GoTo Gojek Tokopedia’s initial sale in April.

The company is backed by Djarum Group, one of Indonesia’s biggest conglomerates known more for its clove-flavoured cigarette products. Global Digital also owns an online travel business and supermarket chains.

Indonesia’s IPO market has revved up to life recently, with 10 companies starting to trade this week alone. The stock benchmark is among top performers in Asia’s major markets this year, even after pulling back 3.5% from a record high in September.

Blibli’s free float of about 15% compares to more than 50% currently for e-commerce rival PT and tech company GoTo. They started trading in Jakarta in Aug 2021 and April, respectively, and are trading 67% and 42% below their offer price.

“As the existing shareholders, Djarum Group has committed to not exit from Blibli after the IPO, so we won’t see any selling pressure like we saw in Bukalapak and GoTo,” said Doni Firdaus, an investment director at Bahana TCW Investment Management. “However, the negative sentiments toward the tech sector still persist, so it will also affect the appetite for Blibli shares.”

According to the prospectus, Global Digital will have a total addressable market estimated at US$440 billion (RM2.08 trillion) in 2025. The company will focus on profitability as it sees growth in online and offline businesses amid lower costs in the first half of the year, CEO Kusumo Martanto said last month. Losses more than doubled to 2.5 trillion rupiah in the first six months of 2022.

Global Investama Andalan, the majority shareholder with a 98.5% stake, and 89 individual investors will have a lock-in period of eight months, according to its prospectus. Global Digital plans to use the IPO proceeds for debt repayment and working capital.

PT BRI Danareksa Sekuritas, PT BCA Sekuritas, Credit Suisse Group AG, Morgan Stanley Asia Ltd and DBS Group Holdings arranged the offering. – BLOOMBERG