Indonesia’s largest tech group, GoTo, aims to raise about USD 1.1 billion in its initial public offering on the local stock exchange on April 11, the company announced Thursday.
The company earlier said the expected listing date was April 4, but pushed the date back by a week to extend its book-building period for the IPO.
Having received approval for the IPO from the Indonesia Stock Exchange, GoTo will start the public offering period on Friday, which will run through April 7. The IPO price is set at 338 rupiah per share, which translates to a projected market capitalization of about 400 trillion rupiah (USD 28 billion).
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GoTo’s public listing comes amid a global market downturn stemming from central banks’ shift to tighter monetary policy and concerns over the Ukraine war. As a result, many growth-driven tech companies have lost a significant amount of market value in recent months.
“To be able to access the public markets under the current conditions is testament to the long-term potential of our business, and will bolster our balance sheet while preserving value for shareholders,” GoTo CEO Andre Soelistyo said in a statement.
Further dismissing concerns over the timing of the listing, he added, “Indonesia’s capital market, which has outperformed other markets around the world, has the depth and capacity to support a listing of this scale.”
GoTo was formed in May last year through the merger of two of the country’s most prominent startups, Gojek and Tokopedia, the largest merger in Indonesia’s corporate history. The group offers digital consumer services ranging from ride-hailing and food delivery to e-commerce and mobile payments. It had about 2.5 million registered drivers and 14 million registered merchants as of September last year.
But the company has had to spend massively to acquire customers and merchants, especially as competition intensifies with its Singaporean rivals, “super app” creator Grab and online gaming and e-commerce group Sea. According to its IPO prospectus, GoTo reported a net loss of about 7.5 trillion rupiah in the first seven months of 2021, on revenue of 2.5 trillion rupiah.
GoTo had said around 30% of the funds raised through the IPO will be used across the group, another 30% by Tokopedia specifically, and 25% by GoPay, the company’s digital payment service.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.