IPO Hits $1.5B For Indonesian eCommerce Firm Bukalapak

Bukalapak, an eCommerce company based in Indonesia, has raised $1.5 billion in an initial public offering (IPO), three sources told U.S. News and World Report on Wednesday (July 21).

One source told the news outlet that Buklapak’s IPO garnered more than $6 billion in demand. That’s a far cry from Bukalapak’s initial goal of $300 million in fundraising in its early stages. That number shot up to $800 million before almost doubling to its current level, according to Reuters.

It is anticipated that Bukalapak’s shares will be priced between 750 and 850 rupiah, per the sources. The market debut is scheduled for Aug. 6. Bukalapak is the fourth-biggest company in Indonesia’s $40 billion eCommerce space, competing with Tokopedia, Sea, Shopee and Alibaba’s Lazada.

Bukalapak, which is backed by GIC and Microsoft, has attracted investor interest for the IPO from long-only funds and sovereign wealth funds, as well as from local investors, one of the sources told Reuters.

In April, Bukalapak raised $234 million in a funding round led by Microsoft, Singapore sovereign wealth fund GIC and media group Emtek. Bukalapak is also eying a merger with a special purpose acquisition company (SPAC) to go public in the U.S. The company is working with Bank Mandiri’s securities arm, Mandiri Sekuritas, for the IPO.

Bank of America and UBS are the joint global coordinators and bookrunners with Mandiri.

Bukalapak is vowing to turn small businesses that use its B2B eCommerce platform into banking agents through a partnership with one of the country’s largest lenders, Reuters reported last year.

Bukalapak plans to introduce grocery sellers and street vendors to a service from Bank Mandiri, the largest bank in Indonesia, through which merchants can help shoppers without smartphones open bank accounts, according to the report.

Supermarkets and vendors are responsible for more than $70 billion worth goods a year annually, or 18 percent of Indonesia’s $380 billion retail market, according to Bukalapak.