GoTo aims to raise US$1.1bn with IPO on Indonesia Stock Exchange

GoTo Gojek Tokopedia is carrying out an initial public offering on the Indonesia Stock Exchange (IDX). The IPO is expected to raise proceeds of at least IDR 15.2 trillion (US$1.1 billion) and according to the Group, will be one of the most significant ever conducted in the country. Prior to this, GoTo Group raised more than US$1.3 billion in pre-IPO fundraising last year and received a US$400 million investment from the wholly-owned subsidiary of the Abu Dhabi Investment Authority. Gojek and Tokopedia officially merged last May.

Andre Soelistyo, GoTo Group CEO said this is a landmark moment in the company's history as it sets out on the final stretch towards becoming a publicly owned company on the IDX. "Indonesia is one of the largest and most exciting growth markets in the world, as reflected in the resilience our capital market has shown this year, against a backdrop of global market volatility. We hope that our IPO will show the world the tremendous opportunity that exists in our country and throughout the Southeast Asia region," he added.

The listing will be the first to be carried out under the new regulations on multiple voting shares set out by the Financial Services Authority of Indonesia, as well as the new listings regulations set out by the IDX. The company intends to offer 48 billion Series A shares (which may be upsized to a maximum of 52 billion Series A shares), consisting entirely of new shares issued by the company and representing up to 4.35% of its enlarged capital upon completion of the IPO (excluding any over-allotment shares). As such, the company expects to raise at least IDR 15.2 trillion (US$1.1 billion) plus an additional IDR 2.3 trillion (US$160 million) should the greenshoe option be exercised.

The price range for the IPO has been set at IDR 316 to IDR346 per share, implying an estimated market capitalisation at admission to the IDX of between IDR 376.6 trillion (US$26.2 billion) and IDR 413.7 trillion (US$28.8 billion). GoTo Group plans to use the proceeds from the IPO, after deducting issuance costs, for working capital to support the Group’s growth strategy. 

As part of the IPO, and in-line with its ongoing commitment to delivering a positive social impact, GoTo Group is also planning to launch the Gotong Royong Share Programme, which will provide the Group’s most active, long-serving and loyal driver-partners, merchants and consumers, as well as employees, with the opportunity to benefit from the IPO. Under the programme, all full-time employees have been made participants in the Group’s Long-Term Incentive Plan Programme, long-serving driver-partners are set to receive grants, while the most loyal merchants and GoTo Group consumers will be eligible to purchase shares via a fixed allocation at IPO.

According to GoTo, its pro format gross transaction value (GTV) grew at 46% compound annual growth rate (CAGR) between 2018 and 2020, and at 62% YoY between Q3 2020 and Q3 2021. Pro forma gross revenue grew at 56% CAGR between FY2018 and FY2020 and 55% YoY between Q3 2020 and Q3 2021.

Meanwhile, it posted a pro forma gross revenue of IDR 15.1 trillion in the 12 months ended 30 September 2021 and accumulated pro forma orders of about two billion in the 12 months ended 30 September 2021. GoTo Group’s total addressable market in Indonesia is expected to grow significantly by 2025.

Soelistyo added: “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’. That is why it was important for us to provide the driver-partners, merchants, consumers and employees in our ecosystem with the opportunity to benefit from the IPO through this highly inclusive and globally unique share programme.”

Meanwhile, fellow ride hailing rival Grab listed on Nasdaq last December, opening at US$13.06. However, WSJ reported earlier this month that Grab's shares plunged 37% to US$3.28 apiece following the launch of its 2021 results. This saw its market capitalisation dip by US$12 billion.

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