GoTo Group, Indonesia’s largest tech company formed by the 2021 merger of ride-hailing giant Gojek and e-commerce firm Tokopedia, has secured enough orders from cornerstone investors for a planned initial public offering (IPO) that could raise funds At least $1.1 billion is within its target price range, Reuters quoted insiders as saying. Long-term investors in the company include the Indonesian unit of UK-based fund manager Schroders and Singapore-based Eastspring Investments, the Asia-focused investment arm of Prudential, a multinational insurance company also from the UK. Although the global market is…
GoTo Group, Indonesia’s largest tech company formed by the 2021 merger of ride-hailing giant Gojek and e-commerce firm Tokopedia, has secured enough orders from cornerstone investors for a planned initial public offering (IPO) that could raise funds At least $1.1 billion is within its target price range, Reuters Quoting industry insiders.
Long-term investors in the company include the Indonesian unit of UK-based fund manager Schroders and Singapore-based Eastspring Investments, the Asia-focused investment arm of Prudential, a multinational insurance company also from the UK.
Despite volatility in global markets amid the Russia-Ukraine conflict and current weak investor demand for tech stocks, the GoTo offering has attracted strong institutional demand as it builds, the report said.
strong international supporters
Investor confidence has been boosted by the company’s strong backers, including Japan’s SoftBank Group, China’s Alibaba Group, Singapore’s sovereign wealth fund GIC and the Abu Dhabi Investment Authority.
The IPO is expected to be priced in early April and will then be open to retail investors. Overall, GoTo aims to raise at least IDR 15.2 trillion ($1.1 billion) by issuing 48 billion new Series A shares at a price range of IDR 316 to IDR 346 per share. The shares offered represent 4.35% of the company’s enlarged capital.
Become the fourth largest listed company in Indonesia
The IPO could value GoTo as high as $28.8 billion, which would make it the fourth-largest listed company in Indonesia. It is already Indonesia’s most valuable startup, contributing about 2% to the country’s GDP.
GoTo is an on-demand, multi-service online platform for ride-hailing, food, grocery and package delivery and logistics and currently has over 2.5 million registered driver-partners, 14 million registered merchants and over 100 million monthly active users in Indonesia, Vietnam and Vietnam . According to 2020 data, the total transaction value in Singapore exceeds US$22 billion.
It also provides an online marketplace for millions of SMEs in Indonesia powered by digital financial solutions such as online payments, financial services and merchant solutions.
