Indonesia’s largest tech group GoTo is set to complete a $1.5-2 billion pre-IPO round, sources privy to the development told DealStreetAsia.
The round is likely to be led by Abu Dhabi Investment Authority (ADIA), while Singapore state investment firm Temasek Holdings, an existing backer, is set to top up in the round.
The transaction is expected to be completed this month, the sources added.
When contacted, a spokesperson at Temasek said the company “does not comment on market speculation and rumours”. Meanwhile, separate queries sent to ADIA and GoTo did not elicit any response at the time of publishing the story.
GoTo, formed through the merger of e-commerce leader Tokopedia and ride-hailing giant Gojek in May 2021, has links to other businesses such as logistics, digital banking, and retail.
In the run-up to its IPO plans, GoTo has conducted several transactions that have helped it increase its valuation and comply with local regulations.
According to the recent filings with Indonesian authorities, GoTo has acquired all shares in its fintech arm GoPay earlier held by overseas entities including Facebook Holdings, Google Asia Pacific, PayPal Inc, Tencent Mobility Limited, and Gamvest Pte. Ltd. The acquisition of shares was done through multiple transactions that were completed on October 4, 2021.
The company’s subsidiary Tokopedia, on the other hand, has fully divested its ownership in OVO to Grab last week to onboard GoPay.
GoTo has a diverse set of more than 100 investors on its cap table which includes Temasek. Even before the merger, Temasek had invested in both Gojek and Tokopedia separately.
The company also counts SoftBank Group, Alibaba, Sequoia Capital, Google, and Singapore wealth fund GIC among its backers.
ADIA, on the other hand, is relatively new to the tech group even as it is otherwise familiar with investments in Indonesia.
The sovereign wealth fund, which allocates between 15% and 25% of its investments in emerging markets, recently formed a $3.75 billion toll road fund with Indonesia’s first sovereign wealth fund INA and other investors including Caisse de dépôt et placement du Québec (CDPQ) and APG Asset Management (APG) in May.
GoTo’s IPO plans
Earlier, GoTo was targeting to make a debut on the bourse in Indonesia by year-end, followed by a US listing. However, regulatory procedures pertaining to the OJK weighing new listing guidelines for tech firms delayed the process.
Now, the company is reportedly looking to make a public market debut early next year.
GoTo’s IPO is widely anticipated following the e-commerce giant Bukalapak’s stellar IDX debut in August, wherein it raised $1.5 billion on its opening day.
Prominent officials and local bourse executives have expressed support for tech companies to conduct IPOs in Indonesia as part of the efforts to boost foreign inflow of capital into the country which help translate into a positive balance of payment.
I Gede Nyoman Yetna, an Indonesia Stock Exchange director, told reporters that the authorities have been conducting one-on-one sessions with tech companies in the country to hear their needs for IPO. The authorities have been revamping regulations to welcome more tech companies, including preparing guidelines for dual classes of shares and mulling how to regulate special purpose acquisition companies (SPACs).