(Bloomberg) — GoTo Group will push ahead with a stock-market debut in Indonesia valuing the ride-hailing and e-commerce company at as high as $28.8 billion, defying the sharp market downturn that battered its two main peers Sea Ltd. and Grab Holdings Ltd. in recent months.
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Jakarta-based GoTo, formed last year by the merger of Indonesia’s two most valuable internet startups, plans to raise about 18 trillion rupiah ($1.26 billion) in its initial public offering, according to a prospectus filing. It will sell as many as 52 billion new Series A shares at 316 to 346 rupiah each. That places its market valuation at $26.2 billion to $28.8 billion, it said in a statement.
GoTo would become the fourth-most-valuable company listed on the Indonesia stock exchange after PT Bank Central Asia, PT Bank Rakyat Indonesia and PT Telkom Indonesia at current price levels. The company aims to debut on April 4 after kick-starting a book-building process and taking investor orders for the offering this month.
The IPO will be a milestone for Southeast Asia’s biggest internet economy. GoTo was formed by the combination of ride-hailing giant Gojek and e-commerce firm PT Tokopedia. It is proceeding with its IPO plans despite tumult in global markets, including a sharp decline in tech stocks from the U.S. to China and Southeast Asia.
Some existing shareholders have agreed to an 8-month lockup period, while GoTo founders won’t be able to sell shares for two years, according to the prospectus. The internet giant raised more than $1.3 billion in a funding round last year from investors including Fidelity International and Google.
Andre Soelistyo, GoTo’s chief executive officer, said last year that Indonesia and the rest of Southeast Asia offer some of the most promising growth markets in the world. The pre-IPO fundraising showed that global investors have confidence “in the region’s rapidly expanding digital economy and our market-leading position,” he said.
The company is planning to offer a stake of as much as 10% in another share sale outside Indonesia. It’s considering a listing in the U.S. among other locations, according to its prospectus.
(Adds company’s estimated valuation in first paragraph)
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