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Bukalapak shifts spending of IPO funds
The publicly listed e-marketplace freed up more funds for business diversification and debt-funded growth.
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The Bukalapak logo. The company was listed on the Indonesia Stock Exchange (IDX) on Friday, Aug. 6, 2021, under the ticker BUKA. (Courtesy of Bukalapak)
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ublicly listed e-commerce company Bukalapak announced on Thursday a change in spending plan for its initial public offering (IPO) funds to gain more room for diversification and debt-funded growth.
Bukalapak, traded under the ticker BUKA on the Indonesia Stock Exchange (IDX), raised nearly Rp 22 trillion (US$1.5 billion) in the IPO, making it the biggest IPO ever at the local bourse.
Read also: Bukalapak, first unicorn to list on IDX, gains 25% on day one
The e-commerce giant stated on Thursday it would slash its working capital spending to 33 percent of the total IPO funds, from the initial 66 percent outlined in the company's prospectus.
Thus, the company frees up another 33 percent of the IPO funds to buy shares and/or assets, participate in joint ventures and pay off debt to grow its own business or that of existing and new subsidiaries.
"In relation to the company's growth and development plans, the management continually assesses and studies business potential and opportunities," said Bukalapak president director Rachmat Kaimuddin in a statement.
The e-commerce company will use the remaining 34 percent of the IPO funds – a proportion unchanged from the prospectus – as working capital for six subsidiaries, whereby subsidiaries PT Buka Mitra Indonesia and PT Buka Usaha Indonesia will receive the lion's share.
