GoTo shares jump 23 per cent after raising US$1.1B in IPO on IDX

GoTo Group’s shares surged on the first day of trading on the Indonesia Stock Exchange after raising US$1.1 billion in the initial public offering (IPO).

As per a Bloomberg report, the shares jumped 23 per cent and were up 14 per cent to 386 rupiah at 9:41 am in Jakarta (The company offered 46.7 billion Series A shares at IDR338 apiece). This brought GoTo’s valuation to approximately US$32 billion.

GoTo’s IPO is the third-largest offering in Indonesia after Bukalapak and Mitratel.

The group plans to use the proceeds for working capital to support the growth strategy, comprising four pillars:

1. Driving customer growth and engagement through cross-pollination and increasing usage among consumers, merchants and driver-partners,
2. Enhancing hyperlocal experiences and infrastructure to provide consumers with more convenience in their digital daily lives,
3. Strengthening ecosystem synergies, including enhanced loyalty and rewards programs, deeper financial services offerings and further development of value-added merchant services,
4. 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.

Also Read: Bukalapak raises US$1.5B on the first day of its IDX debut, shares jump 25 per cent

Last week, GoTo introduced the Gotong Royong Share Program and allocated over US$20 million to driver-partners. It also formed GoTo Future Fund, an endowment fund that aims to support initiatives and solutions that benefit the lives of stakeholders across the GoTo ecosystem.

GoTo Group CEO Andre Soelistyo said: “…the people who deserve the most recognition for today’s milestone are the people who worked so hard to breathe life into our business. Our success can be wholly attributed to our driver-partners, merchants, consumers, and employees. Therefore, it was a priority for us to ensure they could benefit from our IPO via the Gotong Royong Share Program, one of the most inclusive share ownership programs today. With all of these groups working together, we are genuinely unstoppable as we pursue our mission to empower progress for Indonesia and Southeast Asia.

The group claims its pro forma GTV grew at 46 per cent CAGR between 2018 and 2020 and at 62 per cent YoY between Q3 2020 and Q3 2021. Pro forma gross revenue grew at 56 per cent CAGR between FY2018 and FY2020 and 55 per cent YoY between Q3 2020 and Q3 2021.

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