GoTo begins $1.1b IPO process

GoTo Group, formed through the merger of Gojek and Tokopedia, is set to raise 15.8 trillion rupiah (around US$1.1 billion) in a local listing slated for April 11. According to a statement, it is the third largest IPO in Asia and fifth largest in the world this year.

However, the amount is lower than the company’s initial plan to raise a maximum of 20.7 trillion rupiah (more than US$1.4 billion) – or 18 trillion rupiah (over US$1.2 billion) if we don’t factor in overallotment.

Photo credit: GoTo Group

GoTo Group has also announced that it will only offer 46.7 billion series A shares, which represent 3.95% of the firm’s total shares. This includes treasury shares for overallotment.

This is less than the initial plan of 59.8 billion shares, which would have consisted of 52 billion new shares and 7.8 billion treasury shares for overallotment.

The company has set the price per share at 338 rupiah (around US$0.024), which is the “top half of the initial range” that the firm had initially pegged.

The final process, which has been approved by Indonesia’s Financial Services Authority (OJK), will catapult the company’s valuation to 400 trillion rupiah (around US$27.9 billion).

Before the IPO, GoTo raised US$1.3 billion from Abu Dhabi Investment Authority, Google, Temasek, and Fidelity International, among others.

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

Currency converted from Indonesian rupiah to US dollar: US$1 = 14,352 rupiah.