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Blibli plans to list its stock in the open market on November 7. The recent fundraise comes at a valuation of $3.5 billion.
Global Digital Niaga PT, the owner of the e-commerce group Blibli, is now looking to raise a staggering $528 million through an initial public offering (IPO).
This could be probably the second-largest IPO in Indonesia this year. As per reports, Blibli is planning to offer a 15.5% stake by floating 17.7 billion new shares into the market. As per the prospectus published Monday, each Blibli share could cost between 410 rupiah and 460 rupiah apiece. this also puts the company’s valuation at $3.5 billion.
Book building will be by the end of the month. The company plans to list its shares in the open market on November 7. Earlier this year in April, tech company PT GoTo Gojek Tokopedia Tbk raised $959 million making it the largest IPO of 2022. Since then the Indonesian exchange hasn’t conducted any equity sale greater than $100 million. The joint book-runners for Blibli’s IPO include BRI Danareksa Sekuritas PT, BCA Sekuritas PT, Credit Suisse Group AG, Morgan Stanley, and DBS Group Holdings Ltd.
BliBli’s parent group Global Digital Niaga said that it will be using the proceeds of the stock sale to repay debt and restructure working capital. As per the details obtained by Bloomberg, there’s a 12-month voluntary lock-up period for the company. Besides, there’s an 8-month lock-up for the principal and other existing shareholders.
Following the news of the IPO, shares of PT Supra Boga Lestari Tbk where Blibli is the major shareholder, jumped 25% straight in the Indonesian trading session.
IPOs in 2022
This year in 2022, the IPO market has cooled down a lot amid rising interest rates and a liquidity crunch in the market. Higher inflation worldwide has forced central banks to take monetary tightening measures as a result of which liquidity has been sucked out of the system.
While 2021 was the year of massive IPOs amid a liquidity surplus, the situation has changed completely as of now. Only companies with good books and a strong bottom line are making a move to raise public funds during these challenging times.
Thus, Blibli planning to raise $528 million as of now is certainly a very bold move by the company. It will interesting to see the shareholders’ interest in this IPO.