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Reuters
Anshuman Daga and Stefanno Sulaiman
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SINGAPORE/JAKARTA — Indonesia’s biggest tech company GoTo Group is testing investors’ appetites with a public offering expected to raise as much as 17.992 trillion rupiah ($1.3 billion) this month, the second-biggest domestic offering in the booming sector.
Goto was formed last year through the merger of ride-hailing-to-payments company Gojek and leading e-commerce company Tokopedia in Southeast Asia’s largest economy, just as regional rival Grab Holdings was furiously expanding in Indonesia.
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The much-anticipated IPO comes after Goto, which counts Alibaba Group, SoftBank Group Corp and Singapore sovereign wealth fund GIC among its many backers, secured $1.3 billion in a pre-market funding round in late 2021.
“GoTo is still in the early adoption phase, with market penetration rates relatively lower than in developing countries,” GoTo CEO Andre Soelistyo said at an investor briefing on Tuesday.
GoTo said in its prospectus that it plans to sell up to 52 billion new Series A shares and priced the issue at a range of 316 rupiah to 346 rupiah per share.
At the high end, the company will be valued at nearly $29 billion, making it one of Indonesia’s largest companies. The bookbuilding process begins on Tuesday and ends on March 21st, with April 4th set as the expected listing date.
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“We are happy to have a front row seat and witness the Indonesian dream. Given its size and scope, GoTo is the real test for the Indonesian exchange,” said Willson Cuaca, co-founder of East Ventures and early supporter of Tokopedia.
The IPO comes at a time when global stock prices have plummeted and issuers are postponing their offerings as the crisis in Ukraine pushes up commodity prices and fuels fears of economic damage.
Still, GoTo executives remained optimistic about growth prospects in Indonesia.
“Indonesia is one of the largest and most exciting emerging markets in the world, which is reflected in the resilience of our capital market this year amid global market volatility,” said Soelistyo, a former private equity manager.
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Some commodity-heavy markets like Indonesia are holding up, with the local index up 5.7% so far this year after climbing to a record high in recent weeks.
Since the COVID-19 pandemic, food delivery, e-commerce and payment services have seen explosive growth in Indonesia, Southeast Asia’s largest economy, and investors have rushed to support fast-growing businesses.
Goto said its pro forma gross income grew at a compound annual growth rate of 56% between 2018 and 2020 and at 55% year over year in the third quarter of 2021. For the year ended September 30 , the company reported gross sales of Rs 15.1 trillion .
PT Indo Premier Sekuritas, PT Mandiri Sekuritas and PT Trimegah Sekuritas Indonesia are the joint lead bookers for the IPO. ($1 = 14,335,0000 rupiah) (Reporting by Anshuman Daga; Additional reporting by Fanny Potkin; Editing by Stephen Coates)
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