One of Asia’s largest IPOs in 2022 is coming

GoTo Group, the parent company of ride-hailing company Gojek, is expected to raise $1.1 billion in an initial public offering in April. This deal promises to be one of the largest IPOs in Asia this year.

At an IPO price of 338 rupia per share, the valuation of GoTo – which was born last year from the merger of Gojek and Tokopedia – is about $27.8 billion.

This Indonesian technology company also said that it will delay the IPO time by one week, to April 11. Previously, the process of completing the company’s books was also extended to March 24 to give merchants and consumers related to the group more time to buy shares.

According to Mr. Andre Soelistyo – CEO of GoTo Group, being able to access the mass market in the current difficult and sensitive conditions is a clear demonstration of the long-term potential of the group. In addition, he also asserted that this will help strengthen the company’s balance sheet and maintain important values ​​for shareholders.

GoTo will proceed with the IPO despite the recent volatility in the financial markets. The IPO valuation is more conservative than other recent IPOs. Previously, the Indonesian company Bukalapak was valued at the top of the specified range prior to the start of trading, however the token has lost two-thirds of its value since then.

Stevanus Juanda, an analyst from UOB Kay Hian Sekuritas, thinks the price of GoTo is too expensive even at as low as 316 rupiah.

Despite the high valuation, Michael Setjoadi, an analyst from RHB Sekuitas predicts GoTo’s IPO will be a success. “The valuation is expensive but it makes sense because the amount of stock available is very limited,” Setjoadi said. Based on the prospectus, the company has 46.7 billion shares freely transferable, 4% less than the total of 1,480 billion shares after listing.

According to Linh Lam