Editor’s Note: This story has been revised to include details from the company’s IPO prospectus, analysts’ quotes, and financial charts.
Indonesian e-commerce player PT Global Digital Niaga Tbk, known as Blibli, is targeting to raise 8.17 trillion rupiah (nearly $530 million) in a domestic initial public offering (IPO) at a valuation of as much as $3.5 billion.
According to the prospectus filed by the company with the Indonesia Stock Exchange (IDX) on Monday, Blibli will sell 17.77 billion new shares, amounting to a 15% stake in the company, at 410-460 rupiah apiece to the public.
The public offering will start on Nov 1 and end on Nov 3. Blibli will start trading on IDX on Nov 7, under the ticker BELI.
The Djarum Group-backed company plans to use a part of the money raised from the IPO to repay loans worth 5.5 trillion rupiah while the rest of the proceeds will be used as working capital for Blibli and its subsidiaries.
Currently, Global Investama Andalan (GIA) is the majority shareholder of the company with a 98.46% stake (99.15 billion shares). Besides, 163 small investors together own 1.45% in the company, while five key managers own less than 0.05% stake.
After the IPO, GIA’s stake in the company will come down to 83.69%, even though the number of shares in its kitty will remain unchanged. The 163 small investors’ ownership will reduce to 1.23%.
GIA and 89 individual investors will have a lock-in period of eight months from the date on which Blibli obtained approval for the IPO, i.e. Oct 28, 2022. Along with the IPO, the company will issue employee stock options for 55 million shares, or a 0.31% stake.
In terms of financial performance, Blibli’s losses more than doubled to 2.48 trillion rupiah in H1 2022 from 1.11 trillion rupiah in H1 2021. However, the losses have reduced from 3 trillion rupiah in 2019 and 2.41 trillion rupiah in 2020.
At the same time, the company’s revenue more than doubled to 6.77 trillion rupiah in H1 2022 from 3 trillion rupiah in H1 2021. It was also higher compared with 4.29 trillion rupiah in 2020 and 4.18 trillion rupiah in 2019.
The company’s total assets stood at 16.86 trillion rupiah in the first half of 2022, compared with 18.39 trillion rupiah at the end of December 2021. The assets have significantly increased from 8.24 trillion rupiah in 2019 and 8.97 trillion rupiah in 2020.
Blibli’s liabilities have risen 4.81% to 8.7 trillion rupiah in H1 2022 from 8.3 trillion as of December 2021. They have also increased significantly from 4.72 trillion rupiah in 2019 and 6.39 trillion rupiah in 2020.
Wahyu Laksono, an analyst at Traderindo.com, said the Djarum Group’s ‘big name’ and the startup’s ecosystem, which includes Indonesian online travel agency Tiket.com and supermarket chain Ranch Market, will have a significant impact on Blibli’s IPO.
According to Laksono, Blibli has a much stronger ecosystem than Bukalapak, which only focuses on retail merchants and SME partnerships. “However, tech giant GoTo has an even stronger ecosystem with Tokopedia in the e-commerce business and GoTo Financial in financial services,” he told DealStreetAsia.
Indonesian tech giant GoTo’s IPO in April this year raised $1.1 billion at a $28-billion valuation, while Bukalapak was listed in August 2021 after raising an IPO worth $1.5 billion at a valuation of $5.6 billion.
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 raised from the IPO will be enough to cover losses for the next 4-5 years, but Blibli needs to book a profit before that to increase investors’ confidence,” he said.
DealStreetAsia had reported earlier this month that Blibli is planning an IPO at a valuation of 33.4-42.4 trillion rupiah ($2.21-2.79 billion), according to a document reviewed by it.
In June, DealStreetAsia reported that the startup is planning to raise around $500 million through an IPO at a pre-money valuation of over $4 billion.
Founded in 2010, Global Digital Niaga has a diversified ecosystem comprising e-commerce firm Blibli, online travel agency Tiket.com, supermarket chain Ranch Market, Blibli stores, and other offline stores. The company has 14 direct entities and eight indirect entities and has also invested in GoTo, its venture capital arm Go Venture, and Indonesian fintech firm Cermati.
The Djarum Group controls Indonesian lending major Bank Central Asia (BCA) and owns one of the largest tobacco companies in the country.