Editor’s note: updated with ZWC Partners’ comments
Shares of Indonesia tech giant GoTo Group closed 13.02 percent higher at IDR382 on Monday, its first trading day on the Indonesia Stock Exchange (IDX), bringing its market capitalization to $31.5 billion.
Earlier in the trading session, the share price soared as much as 23 percent to an intraday high of IDR416, from its offer price of IDR338.
The total amount raised from the group’s IPO process is approximately $1.1 billion (IDR15.8 trillion), comprising $954.7 million in proceeds plus $146.3 million from treasury shares for the purpose of over-allotment, representing a market capitalization of approximately $28 billion, the company said in a statement.
Based on the total funds raised, GoTo’s IPO is the third-largest in Asia and fifth-largest in the world this year. Around 300,000 investors have participated – the highest ever number to take part in an IPO on the IDX.
“Despite global market volatility, investor interest has been strong, reflecting the rapidly growing demand in Southeast Asia for our on-demand, e-commerce and financial technology services, as well as confidence in GoTo’s position as the largest digital ecosystem in Indonesia,” GoTo Group Chief Executive Officer Andre Soelistyo said.
“Congratulations to GoTo Group and its team. As an investor, we have witnessed GoTo/Tokopedia throughout its journey from a start-up into a technology giant in Southeast Asia. Today we have seen the flourishment of our initial investment thesis. With our long term and systematic research on Southeast Asia technology development landscape, we have been impressed by the team’s deep local insight, excellent operating experience and determination to drive significant impacts in the Southeast Asia digital ecosystem,” Vivian Xu, partner of ZWC Partners said.
“Today’s milestone is a good testimony of the GoTo team’s vision and entrepreneurship. With huge growth potential of the Internet economy in both Southeast Asia and Indonesia, we are very optimistic about the future prospect of GoTo Group,” she added.
ZWC Partners is a private equity firm specializing in investment opportunities in emerging markets across Asia. ZWC Partners has offices in Shanghai, Beijing, Shenzhen, Singapore, and Jakarta.
GoTo Group’s listing also represents a historic moment for the company and the IDX, as the first listing to be carried out under the new regulations on multiple voting rights set out by the OJK. The company offered a total of 46.7 billion Series A shares, comprising newly issued, and treasury shares (for the purpose of over-allotment) at an offer price of IDR338, representing a projected market capitalization of approximately $28 billion (IDR400.3 trillion) at admission.
GoTo Group, which was formed through a merger of Gojek and Tokopedia last year, plans to use the proceeds from the IPO, after deducting issuance costs, for working capital to support the company’s growth strategy, comprising four pillars:
- Driving customer growth and engagement through cross-pollination and by increasing usage among consumers, merchants and driver-partners.
- Enhancing hyperlocal experiences and infrastructure to provide consumers with more convenience in their digital daily lives.
- Strengthening ecosystem synergies including enhanced loyalty and rewards programs, deeper financial services offerings and further development of value added merchant services.
- Investing in high growth areas, including deeper demographic expansion in Indonesia, Singapore, and Vietnam, targeted strategic investments, investment in technology and infrastructure, and the transition towards electric vehicles.
GoTo Group said it is the market leader in Indonesia in each of its business verticals and by strengthening the synergies and network effects from within its ecosystem. GoTo Group has already achieved:
- Pro forma Gross Transaction Value (GTV) of IDR414.2 trillion ($28.8 billion) in the 12-months ended Sept 30, 2021
- Pro forma Gross Revenue of IDR15.1 trillion ($1 billion) in the 12-months ended Sept 30, 2021
- Pro forma Orders of approximately 2 billion in the 12-months ended Sept 30, 2021
- Over 55 million annual transacting users (ATU) on a pro forma basis, as of Sept 30, 2021
- Over 2.5 million registered driver-partners, as of Sept 30, 2021
- Over 14 million registered merchants, as of Sept 30, 2021
GoTo said Indonesia represents Southeast Asia’s largest economy, contributing a GDP of more than $1 trillion and a population of 274 million – the fourth largest in the world. Indonesia and Southeast Asia have a young and highly tech-savvy population with increasing spending power that is driving the growth of the region’s digital economy.
Growing demand for services across GoTo Group’s ecosystem, driven by increasing digital adoption among consumers in Southeast Asia, has underpinned the group’s strong financial performance in recent years. GoTo Group’s pro forma GTV grew at 46 percent CAGR between 2018 and 2020, and at 62 percent year-on-year (y-o-y) between the third quarter (Q3) of 2020 and Q3 of 2021. Pro forma gross revenue grew at 56 percent CAGR between FY2018 and FY2020 and 55 percent y-o-y between Q3 2020 and Q3 2021.
GoTo previously said it is also considering a listing in another market such as the US, according to earlier reports.
Last year, Indonesia-based e-commerce firm Bukalapak raised $1.5 billion in its IPO. Bukalapak’s shares have more than halved after making a strong debut.