[JAKARTA] Bukalapak.com has lost more than half its value since raising US$1.5 billion in Indonesia's biggest public offering.

The shares closed at a record low 352 rupiah on Tuesday, pushing its market value below 37 trillion rupiah (S$3.5 billion). That's down 66 per cent from the 109 trillion rupiah market cap recorded on its first trading day in August.

The IPO flop may not bode well for upcoming tech listings that are expected to propel the local stock market to another year of record deals. Indonesia's largest tech startup GoTo Group and Blibli, an e-commerce platform backed by Djarum Group, both plan to go public in 2022.

Investors will likely focus on tech companies that would be able to report positive earnings within 3 to 6 months after their IPO, said Rudiyanto, a director at Panin Asset Management.

The worsening sentiment may be specific to Bukalapak. Changes in management due to its chief executive officer leaving to join the public sector could be a cause for concern, said BRI Danareksa analyst Niko Margaronis.

Compared to Bukalapak, companies like GoTo have a larger base of potential users and stronger links with retailers, while Blibli has the backing of the Djarum conglomerate, he added.

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"It's a process, people have to start appreciating the Internet economy growth even though they are loss-making," Margaronis said.

Bukalapak's key shareholders included Singapore's GIC and Archipelago Investment, which held a combined 11 per cent stake in the company as of August, while Elang Mahkota Teknologi's unit had a 23.9 per cent stake.

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