Indonesian tech giant GoTo is taking to the market for the first time

Wearing the black and green jacket of a Gojek driver, GoTo CEO Andre Soelistyo (second right) pressed the opening bell at the Jakarta Stock Exchange.

Indonesia’s largest technology company jumped in Jakarta trading on Monday after a $1 billion initial public offering that was the world’s fifth largest this year, defying recent severe weather for Asian technology stocks.

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.

Wearing Gojek’s signature black and green driver’s jacket, GoTo CEO Andrei Solistyo pressed the opening bell at 9am at the Jakarta Stock Exchange.

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

His company’s shares jumped as much as 23 per cent on the top exchanges and fluctuated about 15 per cent at Rs 388 during the trading session.

The company raised about $1.1 billion in its initial public offering that concluded last week, at a price of 338 rupees per share, representing a market value of about $28 billion, it announced on Monday.

It sold $954.7 million (13.7 trillion rupiah) of shares in addition to $146.3 million in treasury stock for the purpose of over-allocation.

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

The company announced last week that it will distribute about $21.6 million in stock to hundreds of thousands of its drivers.

One of the lucky drivers was Ryan Supriandi, who has been the Gojek driver for nearly seven years.

Supriandi was pleasantly surprised to receive a mobile notification that the company had awarded him 4,000 shares worth approximately $90.

GoTo was formed by the merger of car delivery company Gojek and e-commerce platform Tokopedia in 2021

GoTo was formed by the merger of ride-hailing company Gojek and e-commerce platform Tokopedia in 2021.

“I was happy and confused at the same time – what am I going to do with him? Many drivers don’t understand stocks or the markets,” the 34-year-old told AFP.

President Joko Widodo congratulated GoTo on its debut.

“I hope GoTo IPO will motivate Indonesian youth to give new energy to the leap of economic development of our country,” Widodo said.

But Reza Priampada, a stock market analyst from CSA Research Institute, said that while it is still too early to judge how GoTo will perform, investors should proceed with caution.

“While they claim to be the largest market in Indonesia, they are still suffering losses at the moment,” Priyampada said.

“At the moment, investors are still euphoric, but we don’t know if they really understand how GoTo works, what their expectations are and how the management is going.”

GoTo hasn’t posted earnings yet. The exchange stated that in the period from January to July 2021, the company recorded a net loss of more than 556 million dollars.

Last year, another Indonesian unicorn, Bukalapak, launched the largest IPO in the country’s stock market history, raising more than $1.5 billion.

However, shares in the internet market have since fallen by nearly 60 percent, raising doubts in the Southeast Asian tech sector.

GoTo’s successful initial public offering could open the door to a series of listings in the country as several tech companies — including Traveloka, LinkAja, J&T Express, Tiket and Blibli — are also set to make their market debuts, according to to the local media.

GoTo, which considers SEA and Grab its main competitors in the region, said earlier that it also plans to list in the United States.

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

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© 2022 AFP

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