Blibli IPO: Tech Sector Bound to Rebound?

Patterning after the Indonesian tech giants BUKA and GOTO’s relatively recent market listings, e-commerce startups are again seeking public funds through an initial public offering (IPO). PT Global Digital Niaga Tbk, popularly known as Blibli, is targeting to raise Rp8.17 trillion in a domestic IPO at a valuation of US$3.5 billion. According to the prospectus, Blibli is set to sell 17.77 billion new shares at Rp410 to Rp460 per share as the public offering will start on November 1st until November 3rd and will be listed on IDX on November 7th under the ticker BELI. The Djarum Group-backed company aims to allocate 50 million shares to employees through the Employee Stock Allocation Program (ESA). Hendry, the super app's Chief Financial Officer, confirms that the proceeds from the IPO are projected to be used to pay off the balance of their banking facility debt of Rp5.5 trillion. The remaining funds will be used as working capital to support the company’s main business activities and development. Regarding financial performance, Blibli’s losses have more than doubled, spiking from Rp1.1 trillion in 1H21 to Rp2.48 trillion in 1H22. Meanwhile, the company’s revenue increased 123% from Rp1.29 trillion last year to Rp6.77 trillion in 1H22. Chandra Pasaribu, Head of Research at Yuanta Sekuritas, said Blibli’s stock performance would depend on the company’s ability to book a profit. The capital obtained from the IPO will be sufficient to cover 4-5 years of losses, but Blibli needs to book a profit to boost investors’ confidence, conveyed Chandra.