PT Global Digital Niaga Tbk — the entity that owns e-commerce player Blibli, online travel agency Tiket.com, and supermarket chain Ranch Market — listed on the Indonesia Stock Exchange (IDX) on Tuesday.
Shares of the company, which started trading under the ticker BELI, opened at 440 rupiah apiece, lower than the IPO price of 450 rupiah apiece.
However, Blibli’s shares rose in early trade and hit a high of 472 rupiah at around 9:05 am local time, up 4.8% from the IPO price.
Blibli had priced its shares at 450 rupiah apiece — the higher end of the 410-460 rupiah price band declared in the prospectus — during its three-day IPO on Nov. 2-4. It raised 8 trillion rupiah ($513 million) from the IPO at a valuation of $3.5 billion, and sold 17.7 million new shares amounting to a 15% stake in the IPO.
Achmad Yaki, an analyst at BCA Sekuritas, said the listing price fell below the IPO price on Tuesday because of certain “market mechanisms” — there were only a few transactions during market opening on Tuesday, he said. He pointed to the IPO being oversubscribed by 4.4 times, which suggests that retail and institutional investors are optimistic about the company.
He said he expects Blibli’s shares to close their first day of trade above the IPO price.
The Djarum Group-backed Blibli joins the main board of the IDX as the 47th newly-listed company of 2022. It is also the second unicorn to list this year following GoTo’s market debut in April 2022. Another unicorn, Bukalapak, had listed on the IDX last year.
The firm 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.
The public offering comes at a difficult time for tech stocks globally. Geopolitical tensions, high inflation, and rising global interest rates are among the headwinds these companies face.