GoTo shares surge on debut, unveils long-term growth plan

Shares of GoTo have surged in value after its debut on the Indonesia Stock Exchange (IDX) on 11 April. According to Channel NewsAsia, GoTo's shares climbed to as much as IDR 416 (US$0.03) versus the company's offer price of IDR 338 (approximately US$0.02) per share. 

The amount raised from GoTo's initial public offering (IPO) totalled to IDR15.8 trillion. This comprises IDR13.7 trillion in proceeds and IDR2.1 trillion from treasury shares. According to a statement by GoTo, its IPO is the third-largest in Asia and fifth largest in the world this year, with the highest number of investors (300,000) to take part in an IPO on the IDX.

Additionally, GoTo introduced the Gotong Royong Share Programme, which saw the company allocate over US$20 million to driver-partners, as well as forming the GoTo Future Fund, an endowment fund that aims to support initiatives and solutions that benefit the lives of stakeholders across the GoTo ecosystem. Loyal merchants and consumers in Indonesia also received priority access to order a fixed allocation of GoTo shares during its IPO. Furthermore, as part of the program, all full-time employees have been made participants in the Group's long-term incentive plan.

Andre Soelistyo, GoTo Group CEO said that its listing on the Indonesia Stock Exchange will strengthen its ability to pursue its mission and better serve customers. "Despite global market volatility, investor interest has been strong, reflecting the rapidly growing demand in Southeast Asia for our on-demand, eCommerce and financial technology services, as well as confidence in GoTo's position as the largest digital ecosystem in Indonesia," he said.

According to him, the company's success can be wholly attributed to its driver-partners, merchants, consumers and employees, and it was, therefore, a priority for Gojek to ensure they could benefit from our IPO via the Gotong Royong Share Programme, one of the most inclusive share ownership programs in the world today," he added.

At the same time, GoTo also unveiled its long-term strategy for growth, which will be funded by proceeds from the IPO, comprising four pillars:

1. Driving customer growth and engagement
2. Enhancing hyperlocal experiences and infrastructure
3. Strengthening ecosystem synergies
4. Investing in high growth areas.

The high growth areas include enhanced loyalty and rewards programmes, deeper financial services offerings and further development of value-added merchant services, as well as deeper demographic expansion in Indonesia, Singapore and Vietnam, targeted strategic investments, investment in technology and infrastructure, and transitioning towards electric vehicles.

Growing demand for services across GoTo Group’s ecosystem, driven by increasing digital adoption among consumers in Southeast Asia, has underpinned the Group’s strong financial performance in recent years, GoTo said in a statement. The Group’s gross transactional value grew at 46% compound annual growth rate (CAGR) between 2018 and 2020, and at 62% YoY between Q3 2020 and Q3 2021. Meanwhile, its gross revenue grew at 56% CAGR between FY2018 and FY2020 and 55% YoY between Q3 2020 and Q3 2021.

Separately, prior to its IPO, 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. The Group was formed following a merger between Gojek and Tokopedia in May this year, with the new entity boasting a total group gross transaction value of more than US$22 billion last year and over 1.8 billion transactions. According to the company then, its total addressable market is set to grow to over $600 billion in Indonesia by 2025.

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