E-commerce company, Global Digital Niaga, or BliBli upsized after the strong local demand. The company leveraged its IPO to around 17.8bn new shares, which was from 11.1bn to raise Rp.8trn. This is actually a rare condition since most of the global IPO are either pulling down or downsizing. Apparently, local investors placed their faith in BliBli although they have the poor share performance of other technology listings like Bukalapak and GoTo. The previous close ended at Rp284 on Thursday, which is down 67% from the issue price of Rp850 in the previous year.
The local conglomerates like Djarum Group backed BliBli, they are the major producer of clove cigarettes. Then, it might have given a secure place for local investors to invest. A banker close to the IPO argued that investors become very selective and BliBli’s backing has supported it. There have been many subscriptions to the deal with major interest from domestic investors, ultra-high-net-worth investors, and sovereign wealth funds. There are around 50 accounts participating. The top 10 allocation of the deal covered around 65%. The shares sold represent 15% of the expanded capital.
The IPO price was around Rp450 per share, the previous range was around Rp410-460. The calculation is an EV/revenue multiple of 1.5x-1.7x for next year. This is based on the person close to the transaction. They would start trading the shares by November 7. There is also a lock-up of around 12 months for the company as well as eight months for the principal shareholder. The company would use this proceed in order to pay debt. The joint global coordinators are Morgan Stanley and Credit Suisse. Then, the bookrunners are BRI Danareksa Sekuritas, DBS, and BCA Sekuritas.