By Stefanno Sulaiman, Fanny Potkin and Anshuman Daga
JAKARTA/SINGAPORE (Reuters) -GoTo soared as much as 23% in its market debut on Monday after Indonesia's largest tech company raised $1.1 billion in a keenly watched IPO, fuelling expectations of more offerings to come from the sector in Southeast Asia's largest economy.
The initial public offering (IPO) is the world's fifth-largest this year, Refinitiv data showed, and went forward despite many IPOs across the globe being pulled due to the Russia-Ukraine war and rising interest rates.
PT GoTo Gojek Tokopedia Tbk was formed by last year's merger of ride hailing-to-payments company Gojek and e-commerce leader Tokopedia, with its businesses straddling millions of small and mid-sized firms across the archipelago.
"There was no perfect timing for this IPO, but our focus was on Indonesia, with a local investor audience," GoTo's CEO Andre Soelistyo, a former private equity banker who steered Gojek's push into consumer services, told reporters.
GoTo's shares rose as high as 416 rupiah minutes after the start of trade, compared with the 338 rupiah IPO price. Sold only to investors in Indonesia, unlike most other domestic offerings, the shares ended at 382 rupiah, up 13%.
The strong listing will boost tech giants backing GoTo, including SoftBank Group's Vision Fund 1 and Alibaba Group Holding Ltd, which have been battered by the global market rout since late 2021.
It also affirms the attractiveness of Indonesia's $70 billion digital market, where record venture funding is creating a wave of startups.
"GoTo's IPO is a watershed moment for Indonesia," said Joel Shen, head of Asia technology at global law firm Withers.
Indonesian startups also considering braving the market with IPOs include Binance-backed crypto firm TokoCrypto and online travel booking company Tiket.com, sources familiar with the matter told Reuters. The firms could not immediately be reached for comment.
"Many Indonesian startups are watching today's IPO closely and I expect we will see a wave of other Indonesian tech IPOs going forward," Shen said.
STOCK MARKET BOOM
GoTo became Indonesia's third most-valuable listed firm at $31.6 billion, along with Telkom Indonesia, and after Bank Central Asia and Bank Rakyat Indonesia.
"I hope that (the) GoTo IPO will motivate our young generations to give new energy for Indonesia's economic progress," Indonesia President Joko Widodo said in a video message at the listing ceremony, which began with a video of GoTo's leadership in Gojek driver uniforms riding electric motorcycles.
GoTo's IPO benefited from booming equities, with Jakarta's main index hitting a record on Monday and up 9% so far this year, making it Asia's best performing market.
GoTo's founders retained only a small stake after Gojek, Tokopedia and the combined firm raised $9 billion from investors including Alphabet's Google, Tencent, Singapore state investor Temasek Holdings and the Abu Dhabi Investment Authority.
Sharp share price declines in U.S.-listed peers Grab Holdings and Sea, which operate across Southeast Asia, dampened GoTo's valuation as it proceeded with the offering. All three loss-making companies are under pressure for a near-term turnaround.
GoTo's main focus is Indonesia, where the digital economy is forecast to grow nearly five times current levels, to as much as $330 billion, by 2030.
It boasts 2.5 million drivers, 14 million merchants and 55 million annual transacting users, and has small operations in Singapore and Vietnam.
"We see significant room for GoTo to grow further, given its low market penetration and low-frequency usage, and Indonesia's low average consumer spending," Nomura analyst Ahmad Maghfur Usman said in a report, initiating coverage with a target price of 416 rupiah.
GoTo sold only about 4% of its shares, with investors subject to an eight-month lock-in, or two years for those with multiple class voting shares. It is the first to issue multiple class voting shares, taking advantage of new rules.
GoTo allocated shares to 600,000 drivers and said a record 300,000 investors participated in the IPO.
($1 = 14,368.0000 rupiah)
(Reporting by Stefanno Sulaiman in Jakarta and Fanny Potkin; Writing by Anshuman Daga; Editing by Muralikumar Anantharaman and Edmund Klamann)
Here are the markets that will be open on Columbus Day, also recognized as Indigenous Peoples' Day, on Monday, Oct. 10.
The veteran telecom company is having a stellar year in many respects, but reason for concern has emerged.
Everyone knows that you should buy low and sell high if you want to turn a profit in the markets. The trick is finding the bottom, to know when to buy. Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, sees the market bottom hitting in the next couple of weeks, making the end of October the right time for investors to buy in. Referring to some recent predictions by market technician Larry Williams, Cramer says, “The bear market is more or less… toast and, even if the current rally s
The U.S. emergency oil reserves haven’t been this low in four decades.
The message is simple. Be greedy when others are fearful.
Wall Street tends to give stock splits more weight than they should have. Annaly's reverse split, however, might be a genuine warning sign.
Investing in Warren Buffett's biggest holdings can be a winning tactic, but don't overlook the companies that occupy smaller positions in Berkshire Hathaway's portfolio.
The year 2022 has been a painful journey for semiconductor manufacturers. Following the example of AMD , Nvidia and Intel , which are the three main players in the sector, 2022 is a year to forget .Their valuations are in recession. Advanced Micro Devices (AMD) currently has a market value of $94.4 billion, which is a decrease of at least $83 billion compared to December 31, 2021.
Tesla stock is forming a bearish head-and-shoulders pattern. And with CEO Elon Musk likely selling more stock to fund his Twitter purchase, shares of the electric-vehicle giant might have further to fall.
NIO Inc. stock is trending on the Yahoo Finance Platform. Here is a visualization of $NIO performance over time, how that performance compares to the wider industry, and analyst projections for the current quarter.Check out the ticker page here.
(Bloomberg) — Most Read from BloombergRussia Races to Reopen Key Crimea Bridge Damaged in Fiery BlastFacebook Is Warning 1 Million Users About Stolen Usernames, PasswordsNATO Once Feared a Putin Victory. Now It Worries Over His DefeatBiden Should Hit Saudi Arabia Where It Really HurtsBiden Says Putin Threats Real, Could Spark Nuclear ‘Armageddon’A possible ban on Russian supplies by the London Metal Exchange would be a seismic event for the metals industry, cutting some of the world’s biggest c
AMD stock is hitting 52-week lows as it reports disappointing preliminary revenue results. Here's when to buy the chipmaker's shares.
If you buy one between now and the end of October, you’ll earn a composite interest rate of 9.62%.
What do Amazon, Microsoft, and Google parent Alphabet have in common? The company develops ready-made and customizable AI solutions for hundreds of companies across different industries, which can materially accelerate their adoption of advanced technology. Cloud-computing technology is key to businesses that operate online in any capacity, and the three leading providers of cloud services happen to be Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
Goldman Sachs has by far been the better performing of the two in recent years, while Citigroup has struggled over the past decade or so. Let's take a look at these two cheap bank stocks. Goldman Sachs is one of the best values out there right now.
Yahoo Finance Live examines Tesla CEO Elon Musk's recent interview with the Financial Times, opening up about his goals for Twitter and social media and commenting on President Biden and his EV adoption plans.
You would think this would be TIPS’ time to shine. Instead, the prices of Treasury inflation-protected securities—government bonds that are adjusted to keep up with inflation—have declined this year, even as inflation has soared. The comparable loss for ICE’s index of regular Treasury bonds was 13.5%.
The stock is down more than 12% so far this year and has a 52-week low of $18.89 and a 52-week high of $41.56. The stock slid when a federal judge pushed back a hearing until Jan. 5 regarding a lawsuit opposing the company's Thacker Pass lithium mine in Humboldt County in Nevada. Opponents of the mine are trying to get the court to overturn the mine's approval, set by then-President Donald Trump in January 2021.
I'm over age 72. What can I do about avoiding the required minimum distribution (RMD) tax bite? I have a steady stream of other income. -Bernie Tax-deferred accounts, such as 401(k)s and traditional individual retirement accounts (IRAs), are potentially great … Continue reading → The post Ask an Advisor: I'm Over Age 72. How Do I Avoid the RMD Tax Bite? appeared first on SmartAsset Blog.
Investors are facing a storm of headwinds right now – a genuine bear market, stubbornly high inflation, rising interest rates, and increased fears of a recession in the near-term. However, Mary Callahan Erdoes, CEO of JPMorgan's Asset & Wealth Management division, advises investors to stay invested. "It's actually the easiest time in the world to find alpha — there is alpha everywhere… It's everywhere, because we are in such a state of change… While all the world is focused on all the black