Indonesia’s Bukalapak Seeks To Raise $1B By Going Public

Bukalapak, an eCommerce company, is out to raise $1 billion with an initial public offering (IPO) of stock. Reuters said that this amount would be — due to high demand — 25 percent higher than previously announced.

This would be the Indonesia’s first-ever tech unicorn listing, meaning that the deal is valued at more than $1 billion. The IPO could be the biggest local listing in 13 years and the largest ever by a startup in the Southeast Asian country, Reuters said.

The expanded initial public offering (IPO) target size shows investors are eager to invest in technology sector offerings in a region that boasts a growing consumer class.

It also underscores Southeast Asian companies’ hunger for capital as they pursue rapid growth. For example, Grab — a regional ride-hailing and payments firm — has inked a $40 billion merger with a U.S. special-purpose acquisition company.

Reuters sources said that the IPO process for Bukalapak will begin this week, and the public listing will take place in August.

“We are constantly exploring opportunities for the company to continue to grow and develop financially. However, for now, we have not made any decisions,” Sufintri Rahayu, vice-president for corporate affairs at Bukalapak, said, responding to Reuters when asked about the IPO.

Bukalapak raised $234 million in venture funding this spring (April 14) in a round led by Microsoft, Singapore sovereign wealth fund GIC, and media conglomerate Emtek. The eCommerce company was founded 11 years ago.

The funding round was part of a frenzy of interest in Southeast Asian tech companies, with global businesses hoping to get pieces of the pie. The goal? That would be the prospect of earning billions of dollars as startups go public, for example.

Spending by Southeast Asian consumer is on the rise. Bukalapak had enlisted the services of Bank Mandiri’s securities arm, Mandiri Sekuritas as it moved toward an IPO.