GoTo to raise up to $1.26 billion through an IPO this month

Indonesia’s largest tech firm said on Tuesday it planned to raise up to $1.26 billion through an initial public offering this month, despite tumultuous world market conditions.

The GoTo Group set a price range of 316 to 346 rupiah per share for the local IPO, and aims to sell up to 52 billion new Series A shares through the listing, or about 4.35 percent of total shares, reports BSS.

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This price range implies an estimated market capitalisation between $26.2 billion and $28.8 billion, the group said in its press release.

GoTo, the largest digital ecosystem in Indonesia, was formed by the merger of ride-hailing company Gojek and e-commerce platform Tokopedia in May 2021.

“Our listing will be a great moment for those involved in the success of our ecosystem and for everyone that believes in the Indonesian dream,” GoTo Group CEO Andre Soelistyo said.

The Jakarta-based company said it expected to raise at least $1.1 billion from the listing plus an additional $160 million if it decides to exercise the greenshoe option.

An initial offer will be carried out between March 15 and 21, 2022, with a public offering period targeted for March 29-31, the company said in a statement.

The listing on the main board of the Indonesia Stock Exchange or IDX is planned for April 4, according to a prospectus published on Tuesday seen by AFP.

The company, whose main competitors in the region are SEA and Grab, has said previously that it was also planning a US listing.

GoTo said in November last year it had raised some $1.3 billion ahead of a planned IPO, from various investors including Google, Singapore’s Temasek and China’s Tencent.

Gojek is a multi-service platform offering deliveries, takeaway food and financial services, and has expanded beyond its home country into Vietnam and Singapore.

US research institution CB Insights declared the start-up to be Indonesia’s first “decacorn” in 2019 after its value hit $10 billion.

Tokopedia, the country’s second-biggest Unicorn after Gojek, markets itself as an online bridge between merchants and customers but has also expanded into fintech, payments, logistics and retail businesses.

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