PT GLOBAL Digital Niaga, the owner of Indonesia's e-commerce group Blibli, ended its first day of trade unchanged after raising US$510 million in the country's second largest initial public offering this year.
The shares finished at 450 rupiah (S$0.04) each, erasing gains of as much as 4.9 per cent shortly after the market opened. They were sold at 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-flavoured cigarette products. Global Digital also owns an online travel business and supermarket chains.
Before Global Digital, companies that debuted in Jakarta after raising at least US$100 million over the past five years rose by a weighted average of 8.2 per cent in their first day of trade, according to data compiled by Bloomberg.
Indonesia's IPO market has revved up to life recently, with 10 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 3.7 per cent from a record high in September.
Blibli's free float of about 15 per cent compares to more than 50 per cent 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 67 per cent and 43 per cent 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 US$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 (S$224.1 million) in the first six months of 2022.
The company got support from foreign investors, including sovereign wealth funds, local funds and retail investors through the offer, chief of corporate secretary and investor relations Eric Alamsjah Winarta said in media briefing on Tuesday (Nov 8).
Global Investama Andalan, the majority shareholder with a 98.5 per cent 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. BLOOMBERG