Internet Giant GoTo Raises $1.1 Billion in Jakarta IPO

(Bloomberg) -- GoTo Group, Indonesia's largest tech company, raised 15.8 trillion rupiah ($1.1 billion) in one of the world's largest initial public offerings this year.

The ride-hailing, e-commerce and fintech company priced its offering of 46.7 billion shares at 338 rupiah apiece, the Jakarta-based company said in a statement on Thursday. They include 40.6 billion primary shares -- valued at around $957 million -- downsized from the company's original offer of 48 billion shares. The shares were marketed at 316 rupiah to 346 rupiah each. The pricing represents a projected market capitalization of about $28 billion after the offering.

GoTo would become the fourth-most-valuable company listed on the Indonesia stock exchange after PT Bank Central Asia, PT Bank Rakyat Indonesia and PT Telkom Indonesia at current price levels. Its stock-market debut, under the ticker GOTO, is set for April 11.

Formed by the merger of Indonesia's two most valuable startups last year, Gojek and Tokopedia, the Goto IPO will be a milestone for Southeast Asia's biggest economy. The combined entity, which represents the country's largest digital ecosystem, is proceeding with its IPO plans despite tumult in global markets, including sharp swings in tech stock valuations from the U.S. to China and Southeast Asia. It marks Asia's third-largest IPO priced this year after LG Energy Solution and Jinko Solar Co.

Investor response “has remained resilient, despite global macro and market volatility,” Chief Executive Officer Andre Soelistyo said in the statement. “We are proud to fly the flag for Indonesian technology as we prime our business for growth in one of the world's most promising regions.”

GoTo, a loss-making company, is braving the market as tech firms are getting battered by a far-reaching equities selloff. Peers such as Sea Ltd. and Grab Holdings Ltd. have tumbled in the past month, while e-commerce firm PT Bukalapak.com has fallen 55% since going public last summer in a domestic IPO that is also Indonesia's biggest.

Still, GoTo's IPO is creating buzz among a mobile-savvy population who are already shopping on Tokopedia's platform and ordering rides and food via Gojek's app.

“We see a lot of enthusiasm from millennials and Gen Zs for GoTo IPO,” said Anderson Sumarli, co-founder of Ajaib, a mobile app that lets retail investors buy and sell stocks and mutual funds in Indonesia. “In fact, on Ajaib's platform, the number of orders from retail investors have surpassed what we saw during the Bukalapak IPO.”

The shares offered include newly issued and treasury shares for the purpose of over-allotment, according to the statement. PT Indo Premier Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk are the lead banks on the IPO.