To buy or not to buy is the question as GoTo listing nears

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Hi readers,

As a tech journalist, I’m used to getting messages and questions from friends about what’s going on in and around the tech ecosystem.

However, last week’s messages were a bit different. I had a couple of friends asking me whether they should “buy or say bye” to the GoTo shares in its upcoming IPO. I couldn’t help but laugh. Not so much at their question, but at the thought of anyone seeking financial advice from me – someone who still loves the idea of saving money by stuffing it away in rolled-up socks, and vehemently believes in growing wealth by giving it away.

But the buzz around GoTo is understandable. For local investors – both institutional and retail – Gojek and Tokopedia are not only household names they’ve been following excitedly for almost a decade but apps they use daily.

Obviously that is not enough reason to invest in a company.

Fundamentals have to be analyzed, share prices to consider, and implied valuations to assess. But when it comes to loss-making tech companies, the focus shifts to future prospects and comparisons with peers – all of which has generated serious debate among many experts and analysts.

This makes it difficult, as my two friends would attest, to make the big decision. In the end, I hope they make the right decision, based on the opinion of someone more qualified.

— Ardi Wirdana, journalist at Tech in Asia

Top stories this week

Image credit: Timmy Loen

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2. After $1.5b IPO, Bukalapak explores new frontier: gaming
While much of the spotlight has fallen on its investments in banking and retail, Bukalapak is preparing for a serious venture into gaming.

3. PropertyGuru’s financial health in 5 charts
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4. How Gojek-backed Bank Jago is taking on Sea, Akulaku’s digibanks
Bank Neo Commerce and SeaBank are still in the red, while Bank Jago just had its first profitable year since 2015.