Shares of Indonesia’s GoTo surge on first trading day

The share price of Indonesia’s e-ecommerce giant GoTo skyrocketed 23 per cent when its stock started trading on April 11 on the Jakarta stock exchange in a landmark listing, raising $1.1 billion in what was the world’s fifth-biggest initial public offering (IPO) this year so far and the third-largest in Asia.

Shares jumped by 23 per cent in early trading from their issue price of 338 rupiah ($0.024) to 416 rupiah and ended the day 13 per cent higher at 382 rupiah.

The company, which was created from the merger of ride-hailing company Gojek and online marketplace Tokopedia, said it is now valued at about $28 billion, with around 300,000 investors having participated in the listing, the highest ever number to take part in an IPO in Indonesia.

The strong debut provides a boost to some of the tech giants which have backed GoTo, including longtime major investors SoftBank Group’s Vision Fund 1 and Alibaba Group.

President congratulates

Indonesia’s President Joko Widodo congratulated GoTo on its debut.

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

The successful IPO is also a welcome occasion for GoTo’s driver-partners, employees, merchants and clients who received a priority allocation of shares.

“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,” Andre Soelistyo, GoTo Group CEO, said in a statement.

Some analysts remain doubtful

However, some analysts remain cautious, noting that GoTo as per latest available figures has reported $556 million in net losses for the first half of 2021, according to a stock exchange filing. They say it is too early to assess how the company will perform in the future, what its prospects are and if the management is up to the big task.

On August 6 last year, another Indonesian unicorn, Bukalapak, launched the biggest initial offering in the history of the country’s stock market, raising more than $1.5 billion. Shares in the online marketplace also soared strongly by over 24 per cent from the IPO price of 850 rupiahs apiece on the first trading day, but since fell by nearly 62 per cent to 328 rupiah as of April 11, 2022, instilling doubts among investors in the Southeast Asian tech sector.



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The share price of Indonesia’s e-ecommerce giant GoTo skyrocketed 23 per cent when its stock started trading on April 11 on the Jakarta stock exchange in a landmark listing, raising $1.1 billion in what was the world’s fifth-biggest initial public offering (IPO) this year so far and the third-largest in Asia. Shares jumped by 23 per cent in early trading from their issue price of 338 rupiah ($0.024) to 416 rupiah and ended the day 13 per cent higher at 382 rupiah. The company, which was created from the merger of ride-hailing company Gojek and online marketplace Tokopedia, said it...

The share price of Indonesia’s e-ecommerce giant GoTo skyrocketed 23 per cent when its stock started trading on April 11 on the Jakarta stock exchange in a landmark listing, raising $1.1 billion in what was the world’s fifth-biggest initial public offering (IPO) this year so far and the third-largest in Asia.

Shares jumped by 23 per cent in early trading from their issue price of 338 rupiah ($0.024) to 416 rupiah and ended the day 13 per cent higher at 382 rupiah.

The company, which was created from the merger of ride-hailing company Gojek and online marketplace Tokopedia, said it is now valued at about $28 billion, with around 300,000 investors having participated in the listing, the highest ever number to take part in an IPO in Indonesia.

The strong debut provides a boost to some of the tech giants which have backed GoTo, including longtime major investors SoftBank Group’s Vision Fund 1 and Alibaba Group.

President congratulates

Indonesia’s President Joko Widodo congratulated GoTo on its debut.

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

The successful IPO is also a welcome occasion for GoTo’s driver-partners, employees, merchants and clients who received a priority allocation of shares.

“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,” Andre Soelistyo, GoTo Group CEO, said in a statement.

Some analysts remain doubtful

However, some analysts remain cautious, noting that GoTo as per latest available figures has reported $556 million in net losses for the first half of 2021, according to a stock exchange filing. They say it is too early to assess how the company will perform in the future, what its prospects are and if the management is up to the big task.

On August 6 last year, another Indonesian unicorn, Bukalapak, launched the biggest initial offering in the history of the country’s stock market, raising more than $1.5 billion. Shares in the online marketplace also soared strongly by over 24 per cent from the IPO price of 850 rupiahs apiece on the first trading day, but since fell by nearly 62 per cent to 328 rupiah as of April 11, 2022, instilling doubts among investors in the Southeast Asian tech sector.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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