Yahoo Finance Blibli Owner Ends Flat in Jakarta’s Second-Largest Debut of 2022
(Bloomberg) -- PT Global Digital Niaga, the owner of Indonesia’s e-commerce group Blibli, ended its first day of trade unchanged after raising 8 trillion rupiah ($510 million) in the country’s second largest initial public offering this year.
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The shares finished at 450 rupiah each, erasing gains of as much as 4.9% 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-flavored 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 $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 3.7% 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 67% and 43% below their offer price.
Selling Pressure
“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.
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 Tuesday.
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 closing price and adds comments from chief financial officer to ninth paragraph)
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