GoTo set to raise $2b, IPO plans may be pushed to next year

Details:

• Indonesia’s Financial Services Authority (OJK) is reportedly introducing listing guidelines late next month that will allow “tech firms to offer dual-class shares that confer different voting rights.”
• Consequently, while GoTo Group initially aimed to list in the local bourse by the end of 2021 and then do an initial public offering in the US, its plans will probably be moved to early 2022. The company’s valuation could hit US$40 billion after the listings.
• However, GoTo’s efforts to secure US$1.5 billion to US$2 billion ahead of the IPO process saw robust demand, and could be wrapped up in September.

Dive deeper:

• In May, Indonesian super app Gojek and marketplace Tokopedia merged to form GoTo Group. Both startups have shaped Indonesia’s consumer landscape over the years. (Read: Visual: How a decade of work led to the GoTo merger)
• While the companies have formally combined, there are still overlaps between their services. Tokopedia still uses Ovo – a competitor of Gojek’s GoPay – as its primary payment method. (Read: Overlap in Gojek and Tokopedia services suggests possible redundancy)