The shares of GoTo, the Indonesian company that offers everything from payment services to payment services, soared on their first trading day, while a global decline in technology stocks, as a welcome rejection to early investors SoftBank and Alibaba.
Shares of the losing company rose 14% on Monday following an initial public offering that raised $ 1.1 billion, one of the largest lists in the history of the Indonesian stock exchange and among the largest in the world this year.
GoTo’s market debut, which estimates Indonesia’s largest startup at $ 31.9 billion, is Another sign That investors see an opportunity for companies to take advantage of the rapidly growing number of Internet users in the country, home to the fourth largest population in the world.
The offering will also raise SoftBank and Alibaba, two of GoTo’s major investors with 8.7% and 8.8% holdings respectively. Both companies have been hit hard by the technology market entanglement and regulatory frustration in China. SoftBank recently Eliminated positions As he goes under it Click to raise cash.
GoTo was created using the A $ 18 billion merger Of the Gojek super app and e-commerce business Tokopedia last year and said it has more than 100 million monthly users. It plans to use the proceeds from the offering to expand across Southeast Asia, including Singapore and Vietnam.
The listing is a boost for the Indonesian Stock Exchange, which has done so tempting Local companies move away from international markets through looser regulations, including allowing two-class stocks to give founders more control over their companies.
But GoTo’s colleagues in the region are facing increasing pressure amid fierce competition and concerns about profitability.
Bukalapak shares have shed about 70% of their value since the e-commerce group completed Indonesia’s largest listing ever last year. Shares of rival Grab from GoTo’s Singapore reached a record low this month after reporting an annual loss of $ 3.6 billion.
Christine Lau, an analyst at consulting firm Third Bridge, said GoTo is also facing “intense competition” and “unlikely to become number one” in Singapore or Vietnam. The company will also have to fend off challenges in its home market, with regional competitors like Grab and e-commerce app Shopee moving to Indonesia, she added.
#techFT brings you news, comments and analysis on the major companies, technologies and topics shaping the fastest transition of sectors from experts around the world. Click here To get #techFT in your inbox.
“[Indonesia] “Increases domestic consumption significantly after Covid,” CEO Andre Solistio said at a news briefing. “We can not change or control any of them [the global volatility]So what we believed we needed to do was continue to carry out our plans. “
Patrick Cao, president of GoTo, said GoTo had “consistently increased” its top line while “optimizing on the cost side”.
“We continued to operate as an underdog. And yet we were able to maintain and grow our leading market share position,” he said.
He added that SoftBank remained “very pleased” with the company’s progress.
GoTo shares jump as investors back Indonesia’s fast-growing market Source link GoTo shares jump as investors back Indonesia’s fast-growing market