GoTo Announces Initial Public Offering on Indonesia Stock Exchange

PT GoTo Gojek Tokopedia Tbk (“GoTo Group” or the “Group”), the largest digital ecosystem in Indonesia, today announced its plan to carry out an initial public offering (the “IPO”) on the Indonesia Stock Exchange (IDX). The IPO is expected to raise proceeds of at least IDR 15.2 trillion (USD1.1 billion) and will be one of the most significant ever conducted in the country.

Andre Soelistyo, GoTo Group CEO said, “This is a landmark moment in the history of our company as we set out on the final stretch towards becoming a publicly owned company on the Indonesia Stock Exchange. Indonesia is one of the largest and most exciting growth markets in the world, as reflected in the resilience our capital market has shown this year, against a backdrop of global market volatility. We hope that our IPO will show the world the tremendous opportunity that exists in our country and throughout the Southeast Asia region.”

“The strength of our business is that we are more than the sum of our parts. Our ecosystem of on-demand, e-commerce and financial technology services connects millions of consumers, driver-partners and merchants, with the mission to empower progress for everyone in the fast-growing digital economy. We are proud that we’ve come from humble origins in Indonesia, earned the trust of millions of consumers, driver-partners, and merchants, partnered with leading global investors and are now taking our next steps in building an iconic, internationally renowned technology company.”

“I would like to express our gratitude tothe Government of Indonesia for creating an environment that is enabling home-grown tech companies like ours to thrive and for supporting the nation’s digital transformation, which will ultimately benefit everyone.”

GoTo Group is a unique ecosystem that combines on-demand, e-commerce, and financial services through the Gojek, Tokopedia, GoTo Financial platforms. The integration of the three businesses under a single ecosystem brings significant synergies including a hyperlocal delivery network, cross-platform consumer loyalty capabilities and a broad financial services offering across multiple use cases. The breadth and ubiquity of the Group and its businesses are such that the ecosystem contributes to more than 2% of Indonesia’s GDP¹ and its services address nearly two-thirds² of the country’s household consumption.

As part of the IPO, and in-line with its ongoing commitment to delivering a positive social impact, GoTo Group is also planning to launch the Gotong Royong Share Program³, which will provide the Group’s most active, long-serving and loyal driver-partners, merchants and consumers, as well as employees, with the opportunity to benefit from the IPO. Under the program, all full time employees⁴ have been made participants in the Group’s Long-Term Incentive Plan Program, long-serving driver-partners are set to receive grants, while the most loyal merchants and GoTo Group consumers will be eligible to purchase shares via a fixed allocation at IPO.

Andre added, “Our listing will be a great moment for those involved in the success of our ecosystem and for everyone that believes in the ‘Indonesian dream’. That is why it was important for us to provide the driver-partners, merchants, consumers and employees in our ecosystem with the opportunity to benefit from the IPO through this highly inclusive and globally unique share program.”

Indonesia’s tech champion

GoTo Group is the market leader in Indonesia in each of its business verticals and with the advantage of synergies and network effects from within its large ecosystem, the Group is well positioned to capture market growth and has achieved:

• Pro forma⁵ Gross Transaction Value (GTV) of IDR414.2 trillion (USD28.8 billion) in the 12-months ended 30 September 2021
• Pro forma Gross Revenue of IDR15.1 trillion (USD1 billion) in the 12-months ended 30 September 2021
• Pro forma Orders of approximately 2 billion in in the 12-months ended 30 September 2021
• Over 55 million annual transacting users (ATU) on a pro forma basis, as of 30 September, 2021
• Over 2.5 million registered driver partners, as of 30 September, 2021
• Over 14 million registered merchants, as of 30 September, 2021

GoTo Group’s total addressable market (TAM)⁶ in Indonesia is expected to grow significantly by 2025.

• On-demand services TAM is expected to grow from approximately USD5.4 billion in 2020 to approximately USD18 billion in 2025;
• E-commerce TAM for physical goods is expected to grow from approximately USD44.6 billion in 2020 to approximately USD137.5 billion in 2025;
• Financial technology services TAM is expected to grow from approximately USD17.8 billion in 2020 to approximately USD70.1 billion in 2025.

Indonesia is the region’s largest economy, contributing a GDP of more than USD1 trillion and a population of 274 million, making it the largest country in Southeast Asia and the fourth largest in the world. Indonesia and Southeast Asia have a young and highly tech-savvy population with growing spending power that is driving the growth of the region’s digital economy.

Growing demand for services across GoTo Group’s ecosystem, driven by increasing digital adoption among consumers in Southeast Asia, has underpinned the Group’s strong financial performance. GoTo Group’s pro forma GTV grew at 46% CAGR between 2018 and 2020, and at 62% YoY between Q3 2020 and Q3 2021. Pro forma gross revenue grew at 56% CAGR between FY2018 and FY2020 and 55% YoY between Q3 2020 and Q3 2021.

A landmark transaction for GoTo Group and for the Indonesian Stock Exchange

The listing will be the first to be carried out under the new regulations on multiple voting shares set out by the OJK, as well as the new listings regulations set out by the IDX. The company intends to offer 48 billion Series A shares (which may be upsized to a maximum of 52 billion Series A shares), consisting entirely of new shares issued by the Company and representing up to 4.35% of its enlarged capital upon completion of the IPO (excluding any over-allotment shares). As such, the company expects to raise at least IDR 15.2 trillion (USD1.1 billion) plus an additional IDR 2.3 trillion (USD160 million) should the greenshoe option be exercised.

The price range for the IPO has been set at IDR 316-346 per share, implying an estimated market capitalisation at admission to the IDX of between IDR 376.6 trillion (USD26.2 billion) and IDR 413.7 trillion (USD28.8 billion).

GoTo Group plans to use the proceeds from the IPO, after deducting issuance costs, for working capital to support the Group’s growth strategy. An initial offer (book building) will be executed between March 15-21, 2022, with a public offering period targeted for March 29-31 2022. Listing on the Main Board of the IDX with the stock code GOTO will take place over the coming weeks.

GoTo Group has appointed PT Indo Premier Sekuritas, PT Mandiri Sekuritas, and PT Trimegah Sekuritas Indonesia Tbk as the Joint Lead Underwriters for the IPO. The details of the IPO were announced during a Public Expose event that took place today, March 15, 2022.

Notes to editors:

For more information on GoTo and the IPO, please see the Prospectus at gotocompany.com.

Definition of pro-forma: The pro forma information of GTV, Orders, ATU and gross revenue provided is as if Tokopedia had been consolidated by GoTo since January 1, 2018.

Exchange rate: IDR14.400 = USD1

About GoTo Group:

PT GoTo Gojek Tokopedia Tbk (GoTo Group) is the largest digital ecosystem in Indonesia. GoTo's mission is to "empower progress" by offering technology infrastructure and solutions that help everyone to access and thrive in the digital economy. The GoTo ecosystem consists of on-demand services (mobility, food delivery, and logistics), e-commerce (third party marketplaces + official stores, instant commerce, interactive commerce, and rural commerce), and financial technology (payments, financial services, and technology solutions for merchants) through the Gojek, Tokopedia, and GoTo Financial platforms.

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¹Based on GoTo 2020 pro forma GTV as a percentage of Indonesia’s 2020 GDP, as per Euromonitor
²Data provided by RedSeer
³The implementation of the program will be subject to the issuance of effective statement by Financial Services Authority of Indonesia
⁴ As of November 2021
⁵See notes to editors for pro forma definition.
⁶Data for on-demand, e-commerce, and e-wallet market sizes provided by RedSeer

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Contact information

Media:
Finsbury Glover Hering
Ben Richardson, Partner
Malcolm Robertson, Managing Director
GoTo-AP@fgh.com