In a strong debut and the world’s fifth largest IPO this year, local tech company GoTo has surged beyond expectations, raising USD1.1 billion. The brilliant performance by GoTo led to higher expectations of tech offerings in the near future.
GoTo shares gained 23 percent in its stock market debut.
Data shows that the GoTo IPO is the worlds’ fifth largest this year. The IPO came at a time when many tech companies delayed launches due to the Russia – Ukraine war and fears of economic instability.
GoTo’s strong listing came as a shot in the arm for the tech giants backing the venture, and whose investments have largely taken a beating since 2021. Some of the investors include Softbank Group and Alibaba Group Holding.
The listing was an affirmation of Indonesia’s USD70 billion digital market, and also underlined the importance of South East Asia’s largest economy. Record venture funding in Indonesia is creating a new pool of startups.
Head of Asia technology at global law firm Withers, Joel Shen, said that the IPO by GoTo was a watershed moment for Indonesia. He also said that with millions of users and merchants, there is no other company that’s as plugged into Indonesia’s digital economy.
GoTo created by merger of Gojek and Tokopedia
The new entity GoTo was formed by the merger of Gojek with Tokopedia last year. Gojek is a ride-hailing to payments company, while Tokopedia is an e-commerce giant in Indonesia, both of which have millions of small and medium businesses across the islands.
GoTo had initially priced the IPO at 338 rupiah per share, which rose up to as much as 416 rupiah in early trading.
Unlike many other offerings, the shares of GoTo were only on sale to investors in Indonesia. The shares pared gains to trade at 400 rupiah. That price made GoTo Indonesia’s third most-valuable company at USD 30 billion, second only to Bank Central Asia and Bank Rakyat Indonesia.
Indonesia’s President Joko Widodo said that he hoped the IPO from GoTo will motivate younger generations to provide new energy to Indonesia’s economic progress.
A booming local market benefited GoTo’s IPO, with the main index in Jakarta rising 1 percent to a record on Monday, making it Asia’s best performing market.
The IPO listing ceremony at the Jakarta bourse included a video of GoTo’s senior management wearing Gojek uniforms and riding native Electrum brand electric motorcycles.
GoTo sold approximately 4 percent of its shares during the IPO, and investors are subject to an 8-month lock-in period.
Gojek is a Super App headquartered in Indonesia. It’s one app for ordering food, commuting, digital payments, shopping, hyper-local delivery, getting a massage and two dozen services. It is Indonesia’s first and fastest growing unicorn building an on-demand empire across Southeast Asia.
As of 2020, Gojek processed more than $10 billion annualized gross transaction value (GTV) across all markets where it operates – Indonesia, Singapore, Vietnam and Thailand
Tokopedia is an Indonesian technology company with a mission to democratize commerce through technology. Since its founding in 2009, Tokopedia has been a force that pioneers digital transformation in Indonesia. Consistent in building a bridge to connect millions of people, Tokopedia has now reached more than 99% of districts and empowered over 12 million of merchants across the archipelago.