Indonesia's GoTo raises $1.1b, gains 13% on debut

The company sold 46.7bn shares, comprising newly issued stock and treasury shares, for IDR 338 apiece. Its stock reached as high as IDR 416 on April 11, before falling back to close on IDR 382. This equates to a market capitalisation above USD 30bn. GoTo raised USD 1.3bn in pre-IPO funding last November at a reported valuation of USD 28.5-30bn.

Approximately 300,000 investors participated, a record number for an IDX IPO. The company is expected to pursue a US listing in due course.

GoTo’s public debut follows an IDR 21.9trn IDX IPO by e-commerce platform Bukalapak and super app Grab’s merger with a US-listed special purpose acquisition company (SPAC). Both are trading at more than 60% discounts on their offering prices. Bukalapak posted a sizeable first-day gain, but then dropped back, reflecting the lack of institutional depth in the Indonesian market.

“Despite global market volatility, investor interest has been strong, reflecting the rapidly growing demand in Southeast Asia for our on-demand, e-commerce and financial technology services, as well as confidence in GoTo's position as the largest digital ecosystem in Indonesia,” Andre Soelistyo, CEO of GoTo, said in a statement.

Prior to the IPO, Alibaba Group owned 9.16% of the company, while SoftBank Vision Fund had 9.03%. A further 9.35% was held by GoTo Peopleverse Fund, of which the beneficial owners are charitable organisations. Their voting rights are much smaller given the multi-class share structure.

Other investors include Abu Dhabi Investment Authority (ADIA), Temasek Holdings, Astra International, Facebook, Google, JD.com, Tencent Holdings, BlackRock, Capital Group, DST Global, KKR, Northstar Group, Sequoia Capital India, Warburg Pincus, Fidelity International, Primavera Capital Group, and Ward Ferry.

GoTo is the product of a merger last year between Gojek, which covers multiple forms of transportation as well as food delivery, logistics, and finance, and e-commerce marketplace Tokopedia. It claims to be the largest mobile on-demand services and payments platform in Southeast Asia, presiding over an ecosystem that contributes more than 2% of Indonesia’s GDP.

Pro forma gross transaction value for the 12 months ended September 2021 was IDR 414.2trn, while pro forma gross revenue was IDR 15.1trn. Over the same period, the company completed approximately 2bn orders and had 55m annual transacting users, 2.5m registered driver partners, and 14m registered merchants in its network.

GoTo continues to incur heavy losses, though they do appear to be narrowing. Its net loss fell from IDR 24.1bn in 2019 to IDR16.7bn in 2020. For the first seven months of 2021, it was IDR 8.14bn, down from IDR 11.1bn a year earlier.

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• Topics
• Southeast Asia
• IPO
• Technology
• Consumer
• Indonesia
• Softbank
• Alibaba Group
• GoTo
• TMT