GoTo raises about $1.1b in IPO priced near mid-range

[JAKARTA] GoTo Group, an Indonesian startup giant, raised about US$1.1 billion in one of the world's largest initial public offerings announced since the Russian invasion of Ukraine, pricing the deal near the middle of the range.

The Jakarta-based company, formed by the merger of Indonesia's two most valuable startups, priced the IPO at 338 rupiah (S$0.031) a share, according to people familiar with the matter, who asked not to be identified as the information is private. That's just above the middle of the 316 rupiah to 346 rupiah range announced earlier.

A GoTo representative declined to comment on the pricing pending due process. "What we can say is we've been humbled by the response from high quality institutional investors to date," said Corporate Secretary Koesoemohadiani.

GoTo's listing bucks a global trend of companies scrapping or delaying IPOs due to the ensuing market volatility in the wake of the Ukraine war. It is the second-largest deal announced this month, surpassed only by Dubai Electricity & Water Authority's US$2.2 billion offering.

Before GoTo's share sale, 10 companies raised about US$172 million through IPOs in Jakarta this year, according to data compiled by Bloomberg. That's a more than 30 per cent increase over the same period in 2021.

Even as most fund managers expect a downcast market this year, GoTo has a few factors in its favour. The Indonesian stock benchmark is booming, hovering near an all-time high as economic growth picks up steadily after the pandemic.

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People are also frequenting shopping malls and restaurants more than they did before the pandemic, a positive sign for GoTo, which was formed by the combination of ride-hailing company Gojek and e-commerce firm PT Tokopedia.

Russia's invasion of Ukraine prompted Japanese online bank SBI Sumishin Net Bank to cancel an IPO that was supposed to raise more than US$1 billion. What was expected to be India's biggest-ever listing has been pushed back to May, with state-run insurer Life Insurance Corp set to miss its expected trading debut by the end of this month.

GoTo is also braving the market as tech companies are getting battered by the equities selloff, with investors rushing to safe haven assets like gold. Peers such as Sea and Grab Holdings have tumbled in the past month, while e-commerce firm PT Bukalapak.com has fallen more than 60 per cent since going public last summer in a domestic IPO that is also Indonesia's biggest. BLOOMBERG