Arguably the most anticipated IPO in Indonesia is almost upon us, as tech giants GoTo is putting up the building blocks and gauging demand for its foray into the Indonesian stock market.
According to reports, Indonesia’s biggest tech firm — the result of a merger between ride hailing app Gojek and e-commerce platform Tokopedia — is looking to raise IDR 17.99 trillion (US$1.26 billion) from 52 billion shares, which would amount to 4.53 percent of the company’s valuation.
Each share is expected to go for IDR316-346 (US$0.022-0.024).
The IPO is currently in its book building process, as GoTo is figuratively testing the waters for demand of its shares. The firm is expected to gain clearance from the Financial Services Authority (OJK) by March 25, before offering the shares to the general public between March 29-31 ahead of full-on trading at the Indonesian Stock Exchange on April 4.
Gojek and Tokopedia merged to form GoTo in May 2021, counting Alphabet’s Google, Tencent, and Temasek among its backers. Based on the IPO numbers above, the firm values itself at US$29 billion.
Rival local e-commerce firm Bukalapak (BUKA) launched Indonesia’s first tech startup IPO in August 2021 to much fanfare. After an initial positive trajectory, its stock has since declined significantly amid increasing global pessimism in new tech stocks. It remains to be seen if the promise of digital growth in Southeast Asia, particularly Indonesia, would insulate tech stocks like GoTo from global tumult.
