GoTo completes landmark listing on the Indonesia Stock Exchange

Andre Soelistyo, Chief Executive Officer of GoTo Group

PT GoTo Gojek Tokopedia Tbk, a digital ecosystem in Indonesia, announced its listing on the Indonesia Stock Exchange (IDX), where its shares will trade under the stock code GOTO.

The total amount raised from the Group’s IPO process is approximately $1.1 billion, comprising $954.7 million in proceeds plus $146.3 million from treasury shares for the purpose of over allotment, representing a market capitalisation of approximately $28 billion.

What makes GoTo’s IPO rather unique?

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.

As part of the drive to make this IPO one of the most inclusive, GoTo has introduced the Gotong Royong Share Program. The company has allocated over $20m to driver-partners, as well as forming the GoTo Future Fund – an endowment fund that aims to support initiatives and solutions that benefit the lives of stakeholders across the GoTo ecosystem.

Loyal merchants and consumers in Indonesia were able to benefit from the IPO, receiving priority access to order a fixed allocation of GoTo shares. As part of the program, all full time employees have been made participants in the Group’s Long-Term Incentive Plan.

Andre Soelistyo, GoTo Group CEO said, “We embark on a journey as a public company. Our listing on the IDX will strengthen our ability to pursue our mission and better serve clients.”

“Despite market volatility, investor interest has been strong, reflecting the rapidly growing demand in Southeast Asia for our on-demand, e-commerce and financial tech services, as well as confidence in GoTo’s position as the largest digital ecosystem in Indonesia.”

“Ultimately, the people who deserve the most recognition for today’s milestone are the people who worked so hard to breathe life into our business,” Soelistyo further commented.

“Our success can be attributed to partners, merchants, consumers and employees, and 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 in the world today.”

“With all of these groups working together, we are truly unstoppable as we pursue our mission to empower progress for Indonesia and Southeast Asia,” Soelistyo said.

“I would also like to express our gratitude to the Gov’t of Indonesia, the OJK, and IDX for their support and for their continued commitment to the growth of thee digital economy. Together we can help to support Indonesia’s digital shift by leveraging tech to benefit all.”

What does the landmark listing mean to GoTo?

The ceremony and the handover of the certificate took place at the IDX, in Jakarta, attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Chairman of the Board of Commissioners of OJK Wimboh Santoso, and IDX’s President Director Inarno Djajadi.

GoTo Group’s listing represents a historic moment for the firm 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 $46.7bn 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 $28bn (IDR400.3 trillion) at admission.

GoTo Group 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:

  1. Driving customer growth and engagementthrough cross pollination and by increasing usage among consumers, merchants and driver-partners.
  2. GoTo plans on enhancing hyperlocal experiences and infrastructure to provide consumers with more convenience in their digital daily lives.
  3. Strengthening 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.

What are GoTo’s achievements so far?

GoTo Group is the market leader in Indonesia in each of its business verticals and by strengthening the synergies and network effects from within its ecosystem, the Group is well positioned for continued growth. GoTo Group has already achieved:

  • Pro forma Gross Transaction Value (GTV) of $28.8bn in 12-months ended 30 Sept 2021
  • Pro forma Gross Revenue of $1 billion in the 12-months ended 30 September 2021
  • Pro forma Orders of approximately 2 billion in the 12-months ended 30 September 2021
  • Over 55 million annual transacting users (ATU) on a pro forma basis
  • Over 2.5 million registered driver partners, as of 30 September, 2021
  • Over 14 million registered merchants, as of 30 September, 2021

Indonesia represents Southeast Asia’s largest economy, contributing a GDP of over $1Tn and a population of 274 million. Indonesia and Southeast Asia have a young highly tech-savvy population with increasing spending power driving the growth of the region’s digital economy.

Growing demand for services across GoTo Group’s ecosystem, driven by rising digital adoption in Southeast Asia, has underpinned it’s strong financial performance in recent years.

GoTo Group’s pro forma GTV grew at 46% CAGR between 2018 and 2020, and at 62% year-over-year between Q3 2020 and Q3 2021. Pro forma gross revenue grew at 56% CAGR between FY2018 and FY2020 and 55% YoY between Q3 2020 and Q3 2021.

PT Indo Premier Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk acted as the Joint Lead Underwriters for the Initial Public Offering (IPO).