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Softbank, Alibaba backed Indonesian tech giant GoTo raises $1.1B in third-largest IPO in Asia

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GoTo Group, Indonesia’s biggest tech firm, announced on Thursday that it has raised $1.1B (IDR 15.8T) in the third-largest IPO in Asia and the fifth largest in the world this year. 

The announcement comes after receiving approval from the Financial Services Authority (OJK) for its Initial Public Offering (IPO) on the Indonesian Stock Exchange (“IDX”). 

The Jakarta-based company has set its IPO price of 46.7B Series A shares at IDR338 per share. The pricing represents a projected market capitalisation of approximately $28B (IDR400.3T). 

According to Bloomberg, it includes 40.6B primary shares valued at around $957M, downsized from the original offer of 48B shares. The shares were marketed at 316 rupiah to 346 rupiah each.

GoTo says the IPO period will be held from 1st April 2022 to 7th April 2022. The company’s stock market debut is scheduled for 11th April 2022, under the ticker GOTO.

After PT Bank Central Asia, PT Bank Rakyat Indonesia, and PT Telkom Indonesia, GoTo would become the fourth-most-valuable company listed on the Indonesia stock exchange.

Moleonoto, Th, President Director at Indo Premier Securities, one of the joint lead underwriters says, “The positive response from quality, long-only Indonesia-based fund managers means GoTo begins its life as a listed business on strong foundations. To achieve a valuation that truly reflects the company’s underlying worth, within the current macro environment demonstrates the performance of the business and the impact it has had on Indonesian society. We are proud to have been part of this journey—one of the world’s most significant IPOs so far this year.”

Fourth largest in the world

Indonesia is the region’s largest economy, contributing a gross domestic product (GDP) of more than $1T, or 35.2% of Southeast Asia’s total GDP, and a population of 274M, making it the largest country in Southeast Asia and the fourth largest in the world. 

Indonesia and Southeast Asia have a young and highly tech-savvy population with growing spending power that is driving the growth of the region’s digital economy.

Formed by the merger of Indonesia’s two most valuable startups last year, Gojek and Tokopedia, Goto IPO will be a milestone for Southeast Asia’s biggest economy, reports Bloomberg. 

GoTo ecosystem consists of: 

  • On-demand services – mobility, food delivery, and logistics 
  • E-commerce – Third-party marketplaces + official stores, instant commerce, interactive commerce, and rural commerce 
  • Financial technology – Payments, financial services, and technology solutions for merchants. 

According to GoTo’s claims, in the last 12 months ended on 30 September 2021, 55M annual transacting users (ATUs) carried out 2B transactions representing $28.9B of the gross transaction value (GTV) within its ecosystem.

The company is backed by giants such as SoftBank Group Corp, Alibaba Group, and Singapore sovereign wealth fund GIC.

Andre Soelistyo, GoTo Group CEO says, “We are pleased with the investor response, which has remained resilient, despite global macro and market volatility. To be able to access the public markets under the current conditions is a testament to the long-term potential of our business and will bolster our balance sheet while preserving value for shareholders. Indonesia’s capital market, which has out-performed other markets around the world, has the depth and capacity to support a listing of this scale.

“As Indonesia’s market leader, with an ecosystem that can address two-thirds of household consumption, 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,” he adds.

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