GoTo Announces IPO Plan on Indonesia Stock Exchange

TheIndonesia.id - PT GoTo Gojek Tokopedia Tbk announced plans to conduct an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX) and set the price for the IPO at IDR 316 to IDR 346 per share.

"Indonesia is one of the largest and most attractive growth markets in the world, as reflected in the resilience of our capital market, amid global market volatility this year. We hope that GoTo's IPO will show the world the tremendous opportunity that exists in Indonesia and across the region Southeast Asia," said GoTo Group CEO Andre Soelistyo Andre during an online press conference in Jakarta, Tuesday, March 15, 2022.

The listing of GoTo shares will potentially be the first using the new regulation on shares with multiple voting rights (SDHSM) set by the Financial Services Authority, as well as the new listing regulations by the IDX.

GoTo offers 48 billion new Series A shares with the possibility of increasing up to 52 billion new shares and representing up to 4.35 percent of the company's issued and paid-up capital after the completion of the IPO. With it the company can raise at least IDR 15.2 trillion (USD 1.1 billion), with an additional IDR 2.3 trillion (USD 160 million) through the greenshoe.

With the IPO price, the market capitalization at the time of listing the shares on the IDX is estimated to be between Rp. 376.6 trillion (26.2 billion US dollars) and Rp. 413.7 trillion (28.8 billion US dollars). The GoTo Group plans to use the proceeds from the IPO, after deducting issuance costs, for working capital to support the company's growth strategy.

The GoTo Group will conduct an initial offering (book building) between March 15-21, 2022. The public offering period is targeted to be carried out on March 29-31 2022. Listing on the IDX mainboard with the stock code GOTO will be carried out in the next few weeks.

GoTo has appointed PT Indo Premier Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk as the underwriters or joint lead underwriters for the IPO.

Andre said that the strength of the company's business is that GoTo is more than just a group of companies. The company's on-demand, e-commerce, and financial technology service ecosystem connect millions of consumers, driver-partners, and merchants, with the mission of driving progress for everyone amid the fast-growing digital economy.

"We are proud that from our humble beginnings, we have earned the trust of millions of consumers, driver-partners, and traders, and are supported by various leading global investors and are currently taking the next step to become a publicly listed company in Indonesia," said Andre.

He also appreciated Indonesian Government efforts, especially the Financial Services Authority (OJK) and the IDX, which have created a conducive environment and regulations for national technology companies such as GoTo to be able to develop and support Indonesia's digital transformation.

"We believe this government support will have a positive impact on other national technology companies that will encourage digital economic growth and benefit more and more Indonesians," said Andre.

Meanwhile, PT Indo Premier Sekuritas, one of the lead underwriters in the IPO, is optimistic that GoTo shares will be hunted by investors. President Director of PT Indo Premier Sekuritas Moleonoto The said, GoTo's IPO has been predicted to be a benchmark and direction for other technology companies to take the floor on the stock exchange to become a public company.

In a statement in Jakarta, Wednesday, he believes GoTo shares will be collected by institutional and retail investors considering the bright prospects for the digital economy in line with Indonesia's economic growth which will increase significantly and with business development and innovation that GoTo will carry out in the future.

GoTo is a unique ecosystem that combines on-demand services, e-commerce, and financial technology through the Gojek, Tokopedia, and GoTo Financial platforms. The integration of the three businesses in one ecosystem brings strong synergies and is GoTo's advantage, which is supported by a hyperlocal approach with a strong service network, the ability to deliver cross-platform consumer loyalty programs, as well as a broad and comprehensive financial service offering across various activities.

Based on Euromonitor 2020 data, the existence and reach of the GoTo ecosystem can contribute more than 2 percent of Indonesia's GDP and serve almost two-thirds of household consumption in Indonesia.