GOTO TO GO PUBLIC, PLANS TO RAISE UP TO TP 15.2 TRILLION
GoTo has announced that the company will go through an IPO to raise Rp 15.2 trillion.
GoTo Group, the merger company of Gojek and Tokopedia, announced on March 15 that it plans to raise Rp 15.2 trillion through an IPO.
The company is planning to list its shares on the Indonesia Stock Exchange. GoTo Group CEO Andre Soelistyo noted that the stock exchange's resilience during the recent volatility had strengthened the company's confidence.
"This is a landmark moment in the history of our company as we set out on the final stretch towards becoming a publicly owned company on the Indonesia Stock Exchange," Soelistyo said. "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."
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"We hope that our IPO will show the world the tremendous opportunity that exists in our country and throughout the Southeast Asia region," the CEO continued.
The company plans to offer 52 billion new shares at between Rp 316 and Rp 346 each, which is expected to raise the aforementioned Rp 15.2 trillion.
- Greenshoe option
Aside from the initial public offering, GoTo also plans to raise another Rp 2.3 trillion through a greenshoe option. This allows the company to appoint a stabilizing agent within 30 days from the date of its listing on the IDX.
As part of its greenshoe option, GoTo appointed three joint lead underwriters. These are Trimegah Sekuritas Indonesia, Indo Premier Securities, and Mandiri Sekuritas.
The joint lead underwriters have the option to purchase up to 7.8 billion additional shares in the event of oversubscription. These proceeds will stabilize the company's share price in the secondary market.
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- GoTo's industry
The GoTo platform combines on-demand services, financial services, and e-commerce. It is expected to create significant value through the integration of these businesses.
GoTo aims to create a hyperlocal delivery network that can support various cross-platform consumer loyalty and financial services offerings.
According to the company's press release, the GoTo ecosystem contributes to over 2 percent of Indonesia's gross domestic product.
The company's book-building process will start on March 15 and run until March 21. The public offering period for its shares will begin on March 29 and end on March 31.
- Competition in Indonesia's digital economy
Indonesia has the biggest digital economy in Southeast Asia. In 2021, it had a market size of about $70 billion (Rp 1.00 quadrillion), more than twice that of Thailand. By 2025, it's expected to reach $146 billion (Rp 2.03 quadrillion).
With tremendous growth comes tight competition. GoTo's current competition is Grab. "Grab, and its affiliates are one of the company's main competitors for on-demand services and financial technology services," GoTo stated in its IPO document. "The company also competes with Sea for the e-commerce and financial technology services business segments."
The competition has played a massive role in driving Indonesia's digital transformation. It has helped attract customers to super apps by offering cash incentives and discounts.
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