GoTo to go public, seeking to raise Rp15.2 trillion in local IPO

Gojek and Tokopedia merger company GoTo Group on 15 March announced its plan to carry out an initial public offering (IPO) on the Indonesia Stock Exchange (IDX). The company seeks to raise at least Rp15.2 trillion, claiming that the IPO will be one of the most significant IPOs in the country.

“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. 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,” said GoTo Group CEO Andre Soelistyo. 

“We hope that our IPO will show the world the tremendous opportunity that exists in our country and throughout the Southeast Asia region,” he added. 

Under the IPO, GoTo will offer 52 billion new Series A shares for Rp316-Rp346 apiece, expecting to raise at least Rp15.2 trillion ($1.1 billion). Another Rp2.3 trillion ($160 million) will be added should the greenshoe option be exercised. 

Greenshoe option refers to the over-allotment scheme. According to Stockbit, this gives GoTo the flexibility to appoint a broker as a stabilising agent within a period of 30 days from the first day of listing on the IDX. CGS-CIMB is appointed as the stabilising agent. 

Under this scheme, GoTo appointed Indo Premier Sekuritas, Mandiri Sekuritas and Trimegah Sekuritas Indonesia as joint lead underwriters. They have more shares than the original issue amount. 

Hence, in the event of oversubscription, these underwriters can allot up to 7.8 billion (15% of the IPO) Series A shares from treasury shares at the offering price. The proceeds will be used to stabilise the share price in the secondary market so that the share price does not become lower than the IPO price. 

GoTo is a unique ecosystem that combines on-demand, e-commerce and financial services through the Gojek, Tokopedia and GoTo Financial platforms. The integration of the three major businesses under a single ecosystem will bring significant synergies. 

They will then offer a hyperlocal delivery network, cross-platform consumer loyalty capabilities and a broad financial services offering across multiple use cases. 

According to the press release, the breadth and ubiquity of the GoTo ecosystem contributes to more than 2% of Indonesia’s GDP and its services address nearly two-thirds of the country’s household consumption. 

The bookbuilding will be executed between 15 and 21 March, with a public offering period scheduled for 29-31 March. It will be listed in the upcoming weeks on IDX Main Board with the ticker GOTO.