Indonesian tech heavyweight GoTo has soared for the IPO

GoTo is the result of the May 2021 merger of two Indonesian unicorns, the motorcycle taxi app Gojek and the e-commerce company Tokopedia. (Image: 123RF)

Jakarta – Indonesian tech heavyweight GoTo saw its stock rise 13% on Monday in the first day of trading in Jakarta after its IPO, the fifth largest since the beginning of the year in the world.

The stock jumped 23% within minutes of opening and ended 13.02% at 382 rupees (US $ 0.026) as Asian stock markets have shaken in recent weeks. The main index of the Jakarta Stock Exchange fell 0.10% during the session.

GoTo is the result of the May 2021 merger of two Indonesian unicorns, the motorcycle taxi app Gojek and the e-commerce company Tokopedia. This merger has created a new technological juggernaut in Southeast Asia’s largest economy, 270 million in strength.

Wearing the green and black jackets of Gojek drivers, Group CEO Andre Soelistyo rang the bell that marked the opening of the Jakarta Stock Exchange with his euphoric team on Monday morning.

“Despite the volatility in global markets, investor interest is strong, reflecting the rapidly growing demand in Southeast Asia for our e-commerce and fintech services, as well as confidence in GoTo’s position. major digital ecosystem in Indonesia, ”the official said. in a statement.

The Jakarta-headquartered company raised approximately US $ 1.1 billion (Rs 15.8 billion) in its IPO, costing GoTo approximately US $ 28 billion, the group said.

The company, which developed a multi-service “super application”, sold its shares for nearly US $ 955 million, to which was added an over-allotment of US $ 146 million.

GoTo is the third largest IPO in Asia this year, and the fifth largest in the world in a market interrupted by Russia’s invasion of Ukraine and the result of the pandemic.

The company announced last week that it would distribute parts to several hundred thousand riders of the two-wheelers who made their fortune.

Ryan Supriandi, a Gojek driver for almost 7 years, is one of the lucky ones. He was surprised to receive notification that he owned 4,000 shares, valued at US $ 90. “I was happy, but also embarrassed, what should I do? Most drivers don’t understand what stocks are or the stock market, ”the 34-year-old Indonesian told AFP.

Possible listing in the United States

Indonesian President Joko Widodo also greeted the group. “Hopefully GoTo’s IPO will motivate Indonesians to boost our economic growth,” he said.

But Reza Priyambada, financial analyst at the CSA Research Institute, urged investors to be cautious, stressing that it is too early to judge GoTo’s performance: “even if they present themselves as the largest market in Indonesia, it is still registering they are also losses today. ”.

“Investors are in a state of euphoria, but we don’t know if they fully understand how GoTo works, what its prospects are and how the group is run,” he said.

The ride-hailing company became Indonesia’s first décarcorne (unlisted company worth more than US $ 10 billion) in 2019 and has diversified by offering a wide range of services, from food delivery to financial services. GoTo has not yet reported earnings, however. According to documents released by the Stock Exchange, the group posted losses of more than US $ 55 million for the period January-July 2021.

Last year, another tech company, e-commerce platform Bukalapak, debuted on the Indonesian Stock Exchange by raising US $ 1.5 billion. But its title value has weakened and dropped 60% since its IPO.

GoTo, whose main competitors in the region are SEA and Grab, indicated that it could also publicize in the United States in the second phase. The group announced in November a US $ 1.3 billion round of funding with major investors, such as Google, Singaporean Temasek or Chinese Tencent.

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