Pre-IPO pedia | Southeast Asian biggest unicorn GoTo soars 23% on debut after $1.3B IPO

Recently, GoTo, the largest technology unicorn in Southeast Asia, officially announced its listing plan on the Indonesian Stock Exchange.

The company raised 18 trillion rupiahs (about $1.26 billion) for working capital to boost customer acquisition and other growth plans.

According to the prospectus, GoTo sought to sell no more than 52 billion shares at a price of 316 to 346 rupiah per share, with an expected market value of 26B to 29B.

Recently, investors' interest in technology stocks has weakened due to the volatility of global markets caused by the Fed's interest rate hike expectations and the war between Russia and Ukraine, which has depressed the stock prices of technology stocks.

Against this backdrop, GoTo still took the risk of global stock market turmoil and surprised some investors and analysts by launching its IPO process last week.

Andre Soelistyo, CEO of GoTo, said in the prospectus.

On April 11, GoTo was listed on the Indonesian Stock Exchange at a price of 338 rupiahs per share, with a total of 46.7 billion shares issued, with a market value of about $28 billion.

After the opening, GoTo shares rose 23%, and its market value exceeded $30 billion. Compared with Grab, which fell 20% as soon as it went public, GoTo's performance was extremely impressive.

In today's economic circumstances, what's GoTo's special about daring to buck the trend? IPO Buzz will take you to the story of GoTo.

Nadiem Makarim (born 4 July 1984) is the current minister of education, culture, research, and technology of the Republic of Indonesia.

He started his career at McKinsey & Company as management consultant in Jakarta.

Ojek refers tomotorbike taxis.As a loyal ojek user, Nadiem discovered that ojek drivers spend most of their times waiting for customers, while customers waste time walking around looking for an available ojek.

In order to solve this problem, he and Michaelangelo Moran co-founded Gojek in 2010.

Gojek provides a platform where drivers and riders can connect efficiently and allows those drivers to improve their income.

Tanuwijaya was born in Pematang Siantar, North Sumatra. He graduated from high school there, and his family was the middle income who supported his education.

William went to college at Bina Nusantara University and later studied at the Harvard Kennedy School.

To pay for college William worked part time. He worked in an internet cafe twelve hours a day until he graduated in 2003.

He then worked as a software developer in companies. Born and raised in small cities in Indonesia, so he tried to solve the discrepancy issues in the country.

On February 6, 2009, he co-founded Tokopedia with his friend Leontinus Alpha Edison. The company mission is to democratize commerce through technology.

On May 17, 2021, GojekandTokopediamergedin Indonesia’s biggest ever deal at $18Bdollars, named GoTo.

GoTo comprises three business units:Gojek, Tokopedia and GoTo Financial.

As a call center,Gojek connectsconsumers to courier delivery and two-wheeled ride-hailing services. Gojek has now transformed into a super app, providing more than 20 services.

Tokopedia is an Indonesian technology company specializing in e-commerce.

Tokopedia offers millions of products in 25 categories. As of November 2019, Tokopedia had over 7,000,000 merchants with more than 200 million curated products ranging from food and beverages to beauty and fashion products.

Tokopedia also provides digital products such as credit, BPJS payments, utility payments, telephone payments, credit cards, flight tickets, event tickets, games vouchers, and many more.

GoTo Financial was formed when the former two merged, covering services such as GoPay, GoSure, GoInvestasti, GoPayLater, Midtrans and Moka.

After the merger of the two giants, GoTo became the first platform to combine e-commerce, logistics, and financial services in Southeast Asia.

GoTo would have handled more than 1.8 billion transactions with a total gross transaction value of more than US$22 billion in 2021.

It contributes 2% to Indonesia's GDP via its various business lines including a powerful super-app.

Andre Soelistyo, the CEO of GoTo said, "As Indonesia's market leader, with an ecosystem that can solve two-thirds of household consumption. Our business has grown from one of the world's most promising regions and we are proud to lead the technology of Indonesian."

GoTo is favored by many investors. According to the 2020 Tokopedia shareholding structure disclosed in GoTo's prospectus, Alibaba, the largest shareholder, holds 28.25% of the shares through Taobao China

Softbank, the second-largest shareholder, holds 28.03% of the shares through its SVF Investments (UK) Limited.

While Tanuwijaya, Soelistyo and Aluwi of the GoTo group retain 26% voting rights after the share sale, their direct ownership of GoTo is minimal.

Assume over-allotment, Tanuwijaya holds 1.77%, Soelistyo 0.84% and Aluwi 0.77%. Softbank and Alibaba were 8.71% and 8.84% respectively.

In addition to Alibaba and Softbank, GoTo also has many well-known investors, such as Google, Sequoia Capital, BlackRock, Tencent, Temasek, Visa, PayPal, Facebook, etc.

In May last year, GoTo merged at a valuation of $18 billion and was valued at $28 billion before its listing this year.

After the listing on April 11, the stock price rose sharply, and the market value exceeded 30 billion US dollars.

As of April 14, GoTo shares were trading at Rp378, with a market capitalization of $31.2 billion (Rp447.69 trillion).

According to the prospectus, GoTo lost money for three consecutive years from 2018 to 2020.

GoTo posted a net loss of about $853 million in the first nine months of 2021, up 7% from the same period last year, while revenue was about $689 million, up 59.1% from the same period last year.

Andre Soelistyo, the CEO of GoTo said Indonesia is one of the largest and most exciting growth markets in the world. The company has a clear path to profitability.

Mooers, have you ever heard of GoTo? What do you think of the competition between Grab and GoTo in the Southeast Asian market? Follow me to join the latest discussion!