GoTo Group, Indonesia's largest technology company, has witnessed a 23% increase in its share value after raising USD 1.1 billion in one of the largest IPOs across the globe.
Sources claimed that GoTo's stock price increased to a high of USD 0.090 from its initial offer price of USD 0.024, marking it as one of the most successful stock market debuts so far this year. The shares were then scaled to USD 0.027.
Notably, SoftBank Group's Vision Fund 1 and Alibaba Group Holding have long been known to be GoTo’s major investors, with this strong IPO comes as a welcome surprise after they saw a loss of momentum in their other investment opportunities year before.
Despite the turbulent economic conditions around the world, GoTo has managed to stay the course, even with the recent delays in its public listing given the uncertainties and concerns surrounding the Russia-Ukraine war.
According to sources close to the situation, the listing event in Jakarta began with a video of the company's entire senior management rising in-house Electrum brand e-scooters in Gojek driver outfits. This strong stock market debut is the result of a merger that occurred last year between ride-hailing company Gojek and e-commerce firm Tokopedia.
In contrast to previous equity raisings, GoTo sold 4% of its shares in the offering only to Indonesian investors. It is now the first domestic firm to issue various class voting shares as well as tap new regulations that allow unprofitable firms to list directly on the board.
Joko Widodo, Indonesia's President, expressed his excitement in this defining moment for the country in a video message and conveyed his hopes for the young generation to reenergize the country's economic development.
It is worth noting that GoTo's IPO represents a record venture funding at a time when various startups were found pumping up the Southeast Asian economy's USD 70 billion digital markets.
Source credits –