The Business Times: GoTo Soars on Market Debut Following Its $1.1 Billion IPO

Apr 13, 2022

(Image Source: Bloomberg) 

GoTo, a major competitor of Grab, surged as much as 23% in its stock market debut on 11 April. This comes after the Indonesian tech giant has raised $1.1B in a keenly-watched Initial Public Offering (IPO). Formed through the merger of two major startups – Gojek and Tokopedia – GoTo is the first platform in the region to host on-demand, e-commerce and financial services in one ecosystem.

The company kicked off its offering period from April 1 with a market cap of US$28B, which was lower than the original target of US$35-40B. It also downsized its offering from the previously-projected 48 billion shares to 46.7B shares at 338 rupiah each. When asked for the reason, Silva Halim, Managing Director of Mandiri Sekuritas explained that GoTo has already received “sufficient” demand to be able to price its shares at the upper half of its anticipated range. She also emphasized how the firm has a strong balance sheet and that the offer size will minimize dilution for existing shareholders.

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“There was no perfect timing for this IPO, but our focus was on Indonesia, with a local investor audience,” said GoTo’s CEO Andre Soelistyo, a former private equity banker who led Gojek’s push into consumer services. According to Co-Founder Kevin Aluwi, the company will now focus on expanding into even more markets, with plans for an international IPO next.

Source: GoTo rises 14.8% on IDX debut, draws record number of investors

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