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Bukalapak shares drop 6.76% on third trading day, hit lower limit
Indonesia-based e-commerce unicorn Bukalapak share price declines just two trading days after the company’s initial public offering (IPO) as investors sold off shares to take profits.
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The Bukalapak logo. The company listed on the IDX on Friday, Aug. 6, 2021 under the ticker BUKA. (Courtesy of Bukalapak)
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ublicly listed e-commerce giant Bukalapak’s share prices dropped 6.76 percent on Tuesday, hitting the local bourse’s one-day share price decrease limit (ARB), as investors sold off shares to profit from a recent rally.
Shares in Bukalapak, listed on the Indonesia Stock Exchange (IDX) as BUKA, dropped to Rp 1,035 (7.2 US cents) apiece on Tuesday, just a few days after the company listed on the IDX on August 6, which marked the completion of BUKA’s initial public offering (IPO).
Read also: Bukalapak, first unicorn to list on IDX, gains 25% on day one
“The price is too high, so those who bought it during the IPO are profit-taking,” University of Indonesia stock market expert Budi Frensidy told The Jakarta Post on Wednesday, adding that he expected the trend to continue until prices dropped to IPO levels.
Tuesday’s drop ended a surge in BUKA’s price that lasted two consecutive trading days, as investors scrambled for a piece of the first tech unicorn listed in Indonesia.
On Friday, Bukalapak’s shares jumped 24.71 percent from the IPO price of Rp 850 apiece, hitting the IDX’s one-day share price increase limit (ARA). On Monday, share prices rose 4.72 percent when trading closed but had hit the ARA in the first session that day.
Bukalapak’s IPO raised $1.5 billion in funding, the biggest ever in IDX history. However, analysts and observers, citing the company’s Rp 1.34 trillion net loss recorded last year, among other indicators, have warned that BUKA share prices are currently overvalued.
