GoTo’s IPO priced higher than Bukalapak, Bank Neo Commerce

The IPO offering price of GoTo Group – the merged entity of Gojek and Tokopedia – is valued “significantly higher” than its peers, The Business Times wrote, citing a report by brokerage firm UOB Kay Hian (UOBKH).

The brokerage firm said GoTo’s valuation at the offering price of 316 rupiah (US$0.022) apiece is 9.8x the estimate of its price-to-sales figure for FYE 2023. The price-to-sales ratio compares a company’s stock price to its revenues.

Meanwhile, the valuations of its peers Bukalapak and Sea came in at 7.5x and 3.8x the estimate of their price-to-sales figures during the same period, respectively.

UOBHK expects GoTo to turn profitable in 2024 and said its ride-hailing business Gojek is currently benefitting from strong growth and high take rates.

The brokerage firm has maintained a “buy” rating on Bukalapak with a target price of US$0.055, while also highlighting Bank Neo Commerce as a more affordable option (when taking into account the firm’s valuation) with a price target of US$0.23

Currency converted from Indonesian rupiah to US dollar: US$1 = 14,339.50 rupiah

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