- Bukalapak.com (IDX: BUKA) share price reaches 1,325 rupiah per share
- The big e-commerce player went to Jakarta last Friday. on the stock exchange
- The valuation premium over rivals may be unjustified, says Bloomberg Intelligence
- Analysts predict the stock will hit 1,580 rupiah over the next year
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Bukalapak Stock Price: What’s The Latest?
The shares of Bukalapak, the first tech unicorn to list on the Indonesia Stock Exchange (IDX), rose to 1,275 rupiah at 2:56 p.m. SGT on its second day of trading in Jakarta.
The stock rose 25% in the first few minutes on Monday to 1,325 rupiah. The rise triggered the daily upper price action caps on the IDX, which resulted in another suspension of trading. Trading resumed around 2:40 p.m. SGT, Bloomberg data showed.
So far, the meter is up about 50% from the initial public offering (IPO) price of 850 rupiah.
Last Friday, shares were up 25% from their IPO price, closing Bukalapak’s first trading session at 1,060 rupiah. The share had also hit the 25% mark just a few minutes after the opening bell.
All three BUKA analysts recommended “buy” with an average 12-month target price of 1,580 rupiah, according to Bloomberg data.
Why is Bukalapak’s IPO Significant?
The decade-old, loss-making startup raised $ 1.5 billion on Indonesia’s largest IPO.
With its sensational debut, Bukalapak’s market value rose to $ 7.5 billion, making it one of the 15 largest companies in the country.
Bukalapak’s backers include China’s Alibaba-affiliated Ant Group, US tech giant Microsoft, British bank Standard Chartered and Singapore’s sovereign wealth fund GIC.
The startup increased its IPO in several rounds and received $ 6.5 billion in interest from institutional and private investors. The retail share of the offer has been doubled to 5%.
Willson Cuaca, co-founder of venture capital firm East Ventures, expects Bukalapak’s listing to “create a snowball effect and pave the way for more Indonesian listings”.
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Is Bukalapak’s “rich” rating justified?
Although Bukalapak has not yet made a profit, sales in 2020 rose 26% to $ 96 million. The startup’s net loss last year was $ 90.4 million. Registered users totaled 105 million.
Bukalapak works with seven million agents – mostly street kiosks and mom and pop shops – that it connects with consumer goods retailers.
Investors see it as a vehicle to tap into Indonesia’s thriving e-commerce market, Nikkei reported.
In July, Bloomberg Intelligence (BI) analysts believed that Bukalapak’s market share in Indonesian e-commerce could not justify its “rich” valuation premium over larger rivals Tokopedia and Lazada owned by Alibaba.
According to BI calculations, Bukalapak gained around 7.5% of the gross product value (GMV) of Indonesian e-commerce last year.
BI said the IPO at a valuation of $ 5.60 implies an Enterprise Value (EV) to Forward GMV ratio of 1.5x, higher than the 0.5x multiple for Tokopedia, which is at least three times the GMV and the Having web visits.
Meanwhile, Nicolo Magni, UBS’s head of global banking for Southeast Asia and India, said Bukalapak’s IPO “demonstrated that Southeast Asian tech companies can achieve top-notch valuation for growth with significant demand”.