Report
EUR 88.49
For Business Accounts Only
Bukalapak (BUKA) is an Indonesian e-commerce company. The company operates an online consumer-to-consumer (C2C) marketplace that connects buyers and sellers. The company also operates Mitra Bukalapak (Mitra) which provides online-to-offline (O2O) services to micro, small and medium enterprises (MSMEs).
BUKA’s valuation looks expensive compared to Sea Ltd based on our base case assumptions. But in terms of FY22 P/GMV, BUKA looks cheap compared to the street consensus of Shopee’s e-commerce business. Arguably, the relative cheapness stems from BUKA’s short track record and low take rate relative to Shopee. In the case when BUKA can continue to grow as expected, we think P/GMV could close the gap to at least 0.8x which could imply a 90% upside at the top-end purely based on P/GMV.
In this note, we will look at assumptions, and share our thoughts on valuation.
Bukalapak IPO - Betting on its potential
Bukalapak is looking to raise up to US$1.13bn in its Indonesia IPO.Bukalapak (BUKA) is an Indonesian e-commerce company. The company operates an online consumer-to-consumer (C2C) marketplace that connects buyers and sellers. The company also operates Mitra Bukalapak (Mitra) which provides online-to-offline (O2O) services to micro, small and medium enterprises (MSMEs).
BUKA’s valuation looks expensive compared to Sea Ltd based on our base case assumptions. But in terms of FY22 P/GMV, BUKA looks cheap compared to the street consensus of Shopee’s e-commerce business. Arguably, the relative cheapness stems from BUKA’s short track record and low take rate relative to Shopee. In the case when BUKA can continue to grow as expected, we think P/GMV could close the gap to at least 0.8x which could imply a 90% upside at the top-end purely based on P/GMV.
In this note, we will look at assumptions, and share our thoughts on valuation.
Underlying
Bukalapak
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Zhen Zhou Toh
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