Jakarta. On Monday, GoTo Gojek Tokopedia Indonesia, the country's largest digital services ecosystem platform, debuted trading on the Indonesia Stock Exchange, or IDX, climbed as high as 23 percent to set itself as the third-largest company by market capitalization on the bourse.
On its debut, GoTo shares climbed as high as Rp 416 apiece, compared to its initial public offering (IPO) price of Rp 338, before easing to Rp 388 at the end of the first session of trading.
At today's peak, the company's market cap reached Rp 492.7 trillion, eclipsing Telkom Indonesia, the country's oldest and largest telecommunication company, at the fourth place with a market cap of Rp 452 trillion.
"GoTo is the 15th listed company in 2022 and 781 on the stock exchange. The listing of GoTo shares is highly anticipated in the Indonesian stock market, becoming an important milestone, both for the company and the journey of the capital market industry," I Gede Nyoman Yetna, IDX's director of valuation.
"Hopefully, others can also list on the IDX to envigorate Indonesia's capital market and support the national economy," Nyoman said.
GoTo raised Rp 15.8 trillion ($1.1 billion) from the IPO last week, comprising Rp 13.7 trillion in proceeds and Rp 2.1 trillion from treasury shares to cover over-allotment. Bloomberg reported the total raised funds placed GoTo's' IPO as the third-largest in Asia and the fifth largest globally this year.
More than 300,000 investors have participated in the offering, setting another record for an IPO on the IDX.
Coordinating Minister for Economic Affairs Airlangga Hartarto, Chairman of the Board of Commissioners of OJK Wimboh Santoso, and IDX's' President Director Inarno Djajadi presented at the company's debut ceremony at the stock exchange.
Also present were Minister of Trade Muhammad Lutfi, Minister of Cooperatives and SMEs Teten Masduki, Minister of Communications and Informatics Johnny G. Plate, and Minister of Transportation Budi Karya Sumadi.
Last but not least was the Minister of Education, Culture, Research, and Technology, Nadiem Makarim, a co-founder of Gojek Indonesia. This bike ride-sharing company later merged with e-commerce Tokopedia to establish GoTo.
Jakarta-based brokerage firm BRI Danareksa Sekuritas projected GoTo's financial performance would continue to improve. GoTo's revenue would rise to Rp 11.09 trillion in 2022, up 51 percent compared to an estimated Rp 7.36 trillion in 2021. The company's losses would also narrow to Rp 11.74 trillion, from Rp 12.73 trillion.
BRI Danareksa Sekuritasmaintain its recommendation to buy GoTo shares with a target price of Rp 400. This target also illustrates the company controlling the largest market share in Indonesia.
"The company also has several engines for future financial performance growth after the successful merger of Gojek with Tokopedia to form GoTo. The two platforms' integration increases gross transaction value (GTV) with larger orders and higher consumer spending," said BRI Danareksa Sekuritas analyst Niko Margaronis in research published in Jakarta today.
Gopay would also be a new source of growth for the company. Meanwhile, the catalyst is estimated with the company's projected average GTV growth of 30 percent throughout 2021-2025. The increase was supported by the growth in orders after the easing of Covid-19 cases in Indonesia.
GoTo Director Kevin Bryan Aluwi said GoTo planned to utilize the IPO proceeds to support the company's four growth strategies.
First, boost the number of consumers and use of services through product development and synergies between services in the GoTo ecosystem to benefit more consumers, driver-partners, and merchants.
Second, strengthening the shopping and transacting experience in the nearest area (hyperlocal) supported by infrastructure development so that consumers can access the most relevant services easily, quickly, and economically.
Third, strengthen synergies within the ecosystem, including encouraging loyalty programs and rewards to customers, expanding financial services, and deepening value-added services for merchants.
Fourth, invest in areas with high growth potential, including deepening market penetration in Indonesia, Singapore, and Vietnam, making strategic investments, strengthening technology and infrastructure investments, and transitioning to electric vehicles.
"Our business potential in Singapore and Vietnam is still enormous. Part of the IPO funds that we received was to develop expansion there and improve the quality of the products we launched there," Kevin said at a press conference.