Business

Indonesia tech giant GoTo soars on market debut

Shares went up 17% 

Updated 4 years ago · Published on 11 Apr 2022 2:48PM

Indonesia tech giant GoTo soars on market debut
GoTo, the largest digital ecosystem in the archipelago nation of 270 million people, was formed by the merger of ride-hailing company Gojek and e-commerce platform Tokopedia in May 2021. – AFP pic, April 11, 2022

JAKARTA – Indonesia’s biggest tech firm soared in early Jakarta trade today following an initial public offering that closed last week.

GoTo, the largest digital ecosystem in the archipelago nation of 270 million people, was formed by the merger of ride-hailing company Gojek and e-commerce platform Tokopedia in May 2021.

Its shares were up 17% at 396 rupiah at 9.10am.

The Jakarta-based company raised about $1.1 billion (RM4.64 billion) in its IPO, priced at 338 rupiah per share, representing a market value of about $28 billion, it announced today.

It has sold shares for $954.7 million plus $146.3 million from treasury shares for the purpose of over-allotment.

Based on the total funds raised, GoTo’s IPO is the third-largest in Asia and fifth-largest in the world this year, it said.

“Despite global market volatility, investor interest has been strong, reflecting the rapidly growing demand in Southeast Asia for our on-demand, e-commerce and financial technology services, as well as confidence in GoTo’s position as the largest digital ecosystem in Indonesia,” group CEO Andre Soelistyo said in a press release.

The company announced last week it would distribute shares worth 310 billion rupiah to hundreds of thousands of its drivers.

GoTo, whose main competitors in the region are SEA and Grab, has said previously that it was also planning a US listing.

In November, it said it had raised some $1.3 billion from various investors, including Google, Singapore’s Temasek and China’s Tencent.

Last year, another Indonesian unicorn Bukalapak launched the biggest initial offering in the history of the country’s stock market, raising more than $1.5 billion.

However, shares in the online marketplace have since dropped by around 60%, instilling doubts in the Southeast Asian tech sector. – AFP, April 11, 2022

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