GoTo shares up by 15% in initial trading, giving valuation of $32b

GoTo Group, formed through the merger of Gojek and Tokopedia, has officially listed on the Indonesian Stock Exchange (IDX). It’s the second unicorn listed on the local bourse after Bukalapak, which went public in August last year.

GoTo Group’s CEO Andre Soelistyo / Photo credit: GoTo Group

GoTo’s stock rose almost 23% to 416 rupiah (US$0.029) apiece from its initial public offering price of 338 rupiah (US$0.024) only minutes after the market was opened. However, the price has since went down to around 388 rupiah (US$0.027), which is around a 15% bump from the initial price, putting the company’s valuation at around US$32 billion.

The company raised roughly US$952 million in its financial debut by selling more than 40.6 billion of its shares, representing 3.43% of its enlarged share pool.

According to Moleonoto The – president director of GoTo Group’s underwriter Indo Premier Sekuritas – the IPO process attracted around 300,000 single investor identifications (SID), most of whom were retail investors. It resulted in the offer being 15.7x oversubscribed.

In comparison, Bukalapak’s IPO process only attracted around 100,000 SID in August last year, making it 8.7x oversubscribed.

See also: GoTo Group’s financial health in 4 charts

The company will use a third of the money raised for GoTo Group, another third for Tokopedia, and the rest for GoPay, GoFinance, and Gojek’s operations in Singapore and Vietnam.

Currency converted from Indonesian rupiah to US dollar: US$1 = 14,379 rupiah