Research

Bukalapak (BUKA): Cash Is King

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Algo Research Team

Company | May 12, 2024 | Views: 1810

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Key Summary:

  • Cash + liquid assets = 155% market cap
  • Negative EV implies +54% upside, if operation improves
  • Maximizing shareholder value: Buyback or Dividend?

What was once the most anticipated IPO in IDX, Bukalapak disappointed the market where its public debut (priced at IDR850/share) lasted only 2 days to reach an all-time-high of IDR1,325/share before descending significantly by -91% to now IDR120/share.


At IPO, BUKA was valued at IDR87.6tn (USD6bn, based on 3Q21 FX) and raised nearly IDR22tn (USD1.5bn). The promise for Indonesia's e-commerce industry was so real that investors were willing to pay a much premium valuation around 52x P/S (Price-to-Sales) at the time.

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