PT Global Digital Niaga, the owner of Indonesia’s e-commerce group Blibli, rose nearly 5% on Tuesday after raising 8 trillion rupiah ($509 million) in the country’s second largest initial public offering this year.
(Bloomberg) — PT Global Digital Niaga, the owner of Indonesia’s e-commerce group Blibli, rose nearly 5% on Tuesday after raising 8 trillion rupiah ($509 million) in the country’s second largest initial public offering this year.
Shares climbed to as high as 472 rupiah in early trade after opening lower. They were sold at 450 rupiah each, the top of a marketed range in an upsized offering in October. It’s the largest listing in Jakarta since PT GoTo Gojek Tokopedia’s initial sale in April.
The company is backed by Djarum Group, one of Indonesia’s biggest conglomerates known more for its clove-flavored cigarette products. Global Digital also owns an online travel business and supermarket chains.
Companies that debuted in Jakarta after raising at least $100 million over the past five years rose by a weighted average of 8.2% in their first day of trade, according to data compiled by Bloomberg.
Indonesia’s IPO market has revved up to life recently, with ten companies starting to trade this week alone. The stock benchmark is among top performers in Asia’s major markets this year, even after pulling back 3.5% from a record high in September.
Blibli’s free float of about 15% compares to more than 50% currently for e-commerce rival PT Bukalapak.com and tech company GoTo. They started trading in Jakarta in Aug. 2021 and April, respectively, and are trading 68% and 42% below their offer price.
“As the existing shareholders, Djarum Group has committed to not exit from Blibli after the IPO, so we won’t see any selling pressure like we saw in Bukalapak and GoTo,” said Doni Firdaus, an investment director at Bahana TCW Investment Management. “However, the negative sentiments toward the tech sector still persist, so it will also affect the appetite for Blibli shares.”
According to the prospectus, Global Digital will have a total addressable market estimated at $440 billion in 2025. The company will focus on profitability as it sees growth in online and offline businesses amid lower costs in the first half of the year, Chief Executive Officer Kusumo Martanto said last month. Losses more than doubled to 2.5 trillion rupiah in the first six months of 2022.
Global Investama Andalan, the majority shareholder with a 98.5% stake, and 89 individual investors will have a lock-in period of eight months, according to its prospectus. Global Digital plans to use the IPO proceeds for debt repayment and working capital.
PT BRI Danareksa Sekuritas, PT BCA Sekuritas, Credit Suisse Group AG, Morgan Stanley Asia Ltd and DBS Group Holdings arranged the offering.
(Updates with stock price in second paragraph, adds details to fourth paragraph)
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