Indonesian tech giant GoTo plans US$1.1 billion IPO

Indonesian tech company GoTo’s planned initial public offering (IPO) is predicted to raise US$1.1 billion in one of Asia’s biggest IPOs in 2022. Formed in May 2021 after the largest merger in Indonesia’s history of startups Gojek and Tokopedia, GoTo offers a wide range of e-services including food delivery, online shopping, digital payments and ride-hailing. Following the merger, GoTo secured pre-IPO funding of US$1.3 billion (from Google, Temasek, Tencent and Abu Dhabi Investment Authority). Now, the firm is expected to offer 338 rupiah per share starting on 11 April, despite the intermittent backdrop of market volatility owing to monetary policy tightening and resurgent geopolitical risks. The valuation of the company is seen to be underpinned by its existing reputation and - more fundamentally - by Indonesia’s improving macroeconomic backdrop. This includes its growing middle-class, the strength in consumer demand, and the government’s emphasis on strengthening the digital economy. GoTo’s projected market capitalisation of US$28 billion would make it the fourth-largest company listed on the Indonesian Stock Exchange, according to financial data source FactSet.