Indonesian ride-hailing, e-commerce, and fintech company GoTo Group plans to raise up to $1.25 billion through an IPO on the Indonesia Stock Exchange (IDX).
Despite turbulent global markets, including a significant drop in tech stocks from the United States to China and Southeast Asia, the firm is pressing ahead with its IPO plans, going the traditional route instead of jumping on the SPAC bandwagon.
Backed by Google, Tencent and Singapore’s Temasek, GoTo plans to offer up to 52 billion new Series A shares at 316 to 346 rupiah each, according to a prospectus filing.
After launching a book-building process and taking investor orders for the offering this month, GoTo is targeting a launch on April 4.
GoTo’s two main rivals, Sea Ltd and Grab, as well as other Indonesian startups like Bukalapak, have recently experienced market volatility, but GoTo remains positive and is aiming for a valuation of up to $28.8 billion due to its strong growth prospects.
According to Bloomberg, GoTo will benefit from a strengthening stock market and an improving Indonesian economy. In contrast to the woes faced by Chinese equities, the benchmark index has hit an all-time high.
At current price levels, GoTo would become the fourth-most-valuable company listed on the Indonesia stock exchange after Bank Central Asia, Bank Rakyat Indonesia, and Telkom Indonesia.
“Indonesia is one of the largest and most exciting growth markets in the world, as reflected in the resilience our capital market has shown this year, against a backdrop of global market volatility,” Andre Soelistyo, GoTo’s chief executive, said Tuesday.
The company’s growth prospects are attractive to investors, as it has a large addressable market in Southeast Asia. In addition, GoTo is planning to use the proceeds from the IPO to fuel its expansion in neighboring markets, such as Vietnam, Thailand, and the Philippines.
GoTo is Indonesia’s biggest startup, formed by the combination of ride-hailing giant Gojek and e-commerce firm Tokopedia. The company secured $1.3bn in pre-IPO funding in November 2021.
The Wall Street Journal also reports that this will be the first IPO in Indonesia with supervoting stock for key shareholders, including the company’s founders. Such corporate-governance arrangements are common for tech listings in markets such as New York and Hong Kong, but weren’t possible in Jakarta until a new regulation was introduced last year by the financial-services authority.