Gojek and Tokopedia’s GoTo raises $1.5b in IPO, valuing company at $38b

GoTo Group CEO Andre Soelistyo during an IPO event in Jakarta on March 15, 2022. PHOTO: GOTO GROUP

SINGAPORE (BLOOMBERG) - GoTo, Indonesia’s largest tech company, has raised 15.8 trillion rupiah (S$1.5 billion) in one of the world’s largest initial public offerings (IPOs) this year.

The ride-hailing, e-commerce and fintech company priced its offering of 46.7 billion shares at 338 rupiah apiece, the Jakarta-based company said in a statement on Thursday (March 31). 

They include 40.6 billion primary shares - valued at around US$957 million (S$1.3 billion) - downsized from the company’s original offer of 48 billion shares. The shares were marketed at 316 rupiah to 346 rupiah each. 

The pricing represents a projected market capitalisation of about US$28 billion (S$38 billion) for GoTo after the offering.

GoTo would become the fourth most valuable company listed on the Indonesia stock exchange after Bank Central Asia, Bank Rakyat Indonesia and Telkom Indonesia at current price levels. 

Its stock market debut, under the ticker GOTO, is set for April 11. 

Formed by the merger of Indonesia’s two most valuable start-ups last year, Gojek and Tokopedia, the Goto IPO will be a milestone for South-east Asia’s biggest economy. 

The combined entity, which represents the country’s largest digital ecosystem, is proceeding with its IPO plans despite tumult in global markets, including sharp swings in tech stock valuations from the United States to China and South-east Asia.

It marks Asia’s third-largest IPO priced this year after LG Energy Solution and Jinko Solar. 

Investor response “has remained resilient, despite global macro and market volatility”, chief executive officer Andre Soelistyo said in the statement. “We are proud to fly the flag for Indonesian technology as we prime our business for growth in one of the world’s most promising regions.”

GoTo, a loss-making company, is braving the market as tech firms are getting battered by a far-reaching equities sell-off. Peers such as Sea and Grab Holdings have tumbled in the past month, while e-commerce firm Bukalapak has fallen 55 per cent since going public last summer in a domestic IPO that is also Indonesia’s biggest.

Still, GoTo’s IPO is creating buzz among members of a mobile-savvy population who are already shopping on Tokopedia’s platform and ordering rides and food via Gojek’s app.

“We see a lot of enthusiasm from millennials and Gen Zs for the GoTo IPO,” said Mr Anderson Sumarli, co-founder of Ajaib, a mobile app that lets retail investors buy and sell stocks and mutual funds in Indonesia. “In fact, on Ajaib’s platform, the number of orders from retail investors has surpassed what we saw during the Bukalapak IPO.”

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