Indonesian Tech Giant GoTo Eyes $1.25 Billion IPO At $29 Billion Valuation

GoTo Group is moving ahead with its much-anticipated initial public offering that could see it raise roughly 18 trillion rupiah ($1.25 billion), according to a prospectus filing released on Tuesday.

The company, which was formed last year through a merger of Indonesian unicorns Gojek and Tokopedia, aims to sell as many as 52 billion new Series A shares for 316 to 346 rupiah per share. The share sale would give the company a valuation of up to $28.8 billion.

“Our growth will be bigger and faster, especially as Indonesia will have a high economic growth and our verticals can still have a broader reach,” Andre Soelistyo, GoTo Group CEO said in a statement.

GoTo’s listing comes at a time when global markets have tumbled and other IPOs have been postponed due the volatility sparked by geopolitical events. The Jakarta Composite Index has risen 2.4% following Russia’s invasion of Ukraine last month, while the wider MSCI Asia Pacific Index is down 10.2% in the same period. The ongoing conflict in Europe and China’s new wave of Covid cases have sent stocks tumbling in recent days.

Indonesia’s largest-ever IPO was Bukalapak, which raised $1.5 billion when it listed last July, but the stock has lost two-thirds of its value since then.

Jakarta-based GoTo spans e-commerce, ride-hailing and financial services in the most populous country in Southeast Asia. The group has more than 55 million users, 14 million merchants, and 2.5 million drivers as of last September.

GoTo reported gross revenue of 15.1 trillion rupiah in the year ending September 30, but the company still has yet to turn a profit. “Compared to similar players, our commission rate is smaller, so as our innovation and market penetration matures we will have a better chance to increase our profitability,” Soelistyo said.

The company had previously raised $1.3 billion in a pre-initial public offering funding round, backed by tech titans Google and Tencent last November. GoTo said it’s also considering a listing in another market such as the U.S.