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RECORD JAKARTA STOCK MARKET
Against a backdrop of sharp declines seen in U.S.-listed peers Grab Holdings Ltd and Sea Ltd which operate across Southeast Asia, GoTo's valuation and size were lower than expected. All three loss-making companies are under pressure to turn around near-term.
GoTo's main focus is Indonesia, where the digital economy is forecast to grow nearly five times to up to $330 billion by 2030 from 2021.
It boasts 2.5 million drivers, 14 million merchants and 55 million annual transacting users, and also has small operations in Singapore and Vietnam.
GoTo's IPO benefited from a booming local market, with Jakarta's main index rising 1% to a record on Monday, taking gains to 11% so far this year and making it Asia's best performing market.
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It sold only about 4% of its shares in the IPO. GoTo is the first domestic firm to issue multiple class voting shares and tap new rules allowing unprofitable firms to list directly on the bourse's main board.
And unlike the case of smaller e-commerce firm Bukalapak , which raised $1.5 billion in its IPO last year, all investors in GoTo are subject to an eight-month lock-in, or two years for those with multiple class voting shares. Bukalapak's shares have more than halved after making a strong debut.
GoTo broadened its investor base by allocating shares to 600,000 drivers and said a record 300,000 investors participated in the IPO.
Other Indonesian startups eying local IPOs included Binance-backed crypto firm TokoCrypto and online booking travel company Tiket.com, sources told Reuters. Both firms were not immediately reachable for comments.
"Many Indonesian startups are watching today's IPO closely and I expect we will see a wave of other Indonesian tech IPOs going forward," said Shen from law firm Withers. ($1 = 14,368.0000 rupiah)
