After raising $1.5 billion in Indonesia’s biggest public offering, Bukalapak has lost a staggering 66% of its value. That could signal more trouble ahead for future tech listings from unicorns like GoTo and Blibli, which have been expected to drive Indonesia to another year of record transactions.
On its first trading day in August 2021, the firm had a market capitalization of roughly $7.5 billion. On Tuesday, its shares closed at a new low of 352 rupiah, shrinking Bukalapak’s market capitalization to less than $2.6 trillion, according to a report by Bloomberg.
In response to the Bukalapak news, investors will almost certainly focus on technology firms that can announce good earnings within three to six months after their IPO, says Rudiyanto, a director for Panin Asset Management.
On the other hand, according to Bloomberg, the negative sentiment might only be limited to Bukalapak after the firm’s CEO recently resigned to serve in government, said BRI Danareksa analyst Niko Margaronis.
In comparison to Bukalapak, GoTo has a larger pool of potential customers and stronger ties with merchants, while Blibli is backed strongly by Djarum Group.
DealStreet Asia said that GoTo’s success will depend on finding the right valuation. It has also been reported that the company has hired underwriters to manage a $1 billion IPO slated for early 2022.
In November 2021, the firm raised $1.3 billion in a pre-IPO fundraising round from investors including the Abu Dhabi Investment Authority (ADIA), Google, Temasek, and Fidelity International, bringing its value to nearly $28 billion ahead of a planned public offering this year.
Meanwhile, previous reports on Blibli’s IPO suggest that the size of the offering will be determined by which Blibli businesses are included. The firm would not comment on its IPO plan but stated that it is willing to explore any options that would broaden its ecosystem.