Indonesia’s GoTo to extend closing of pre-IPO round as it first targets sale of OVO

Indonesia’s biggest tech group GoTo has decided to extend the closing of its pre-IPO round as it first seeks to finalise payment startup OVO’s divestment from e-commerce platform Tokopedia, sources privy to the development told DealStreetAsia.

GoTo, formed through the merger of ride-hailing giant Gojek and Tokopedia in May, is understood to be in talks to raise about $2 billion in its pre-IPO round that has “already been oversubscribed threefold,” said one of the persons mentioned above.

“They (GoTo) haven’t closed the funding yet as they first look to finalise the divestment of OVO to Grab and Emtek Group… OVO divestment is important. If not done, GoTo can’t launch its IPO going forward,” the person added.

GoTo’s pre-IPO round is now expected to be closed over the next few weeks.

The divestment process between OVO’s shareholders and Emtek Group is understood to have reached an agreement and is slated to be announced shortly. After the proposed transaction, Gopay, Gojek’s digital wallet, is set to come into Tokopedia’s ecosystem as its main e-wallet.

While Tokopedia and Gojek spokespersons declined to comment on the development, an email sent to Emtek did not elicit any response.

Tokopedia, Grab, and Lippo Group are amongst OVO’s prominent shareholders. While Tokopedia holds a 36.1% stake in OVO’s parent company PT Bumi Cakrawala Perkasa (BCP) through its wholly-owned subsidiary Digital Investindo Jaya, Singapore-based Grab is its biggest shareholder holding 39.2% stake. Lippo Group, meanwhile, holds a 7.2% stake in BCP through two of its subsidiaries PT Inti Anugrah Pratama and PT Prima Ecommerce Global. Among other shareholders, Tokyo Century Corporation owns 7.5% in BCP, while PT Wahana Inovasi Lestari (owned by Tokopedia owners Leontinus Alpha Edison and William Tanuwijaya) owns another 5% in BCP.

Indonesia’s central bank recently barred any entity from holding a controlling stake in more than one digital wallet in the country. It also capped foreign investment (based on ultimate beneficial ownership of shares) in payments firms at 85% and put a 49% ceiling on the voting power of foreign shareholders in such companies.

Reuters first reported that GoTo will delay its IPO in 2022 – the company is looking at a dual-listing, starting in Indonesia’s stock exchange and then in the US.

“This is a year of big exits. And in a year of big exits, you’re competing with other attractive exit opportunities for the same resource,” a technology lawyer at global law firm Withers Joel Shen had earlier said, commenting on the timing of GoTo’s IPO.

Action has been hotting up on Indonesia’s bourse with more retail investors willing to park their money in the country’s listed assets. Indonesia’s Financial Services Authority (OJK) recorded a 56.95% jump so far this year in terms of the addition of retail investors.

E-commerce behemoth Bukalapak raised $1.5 billion in Indonesia’s biggest IPO last month, five times more than the original target of $300 million. Bukalapak shares closed at 1,060 rupiah on its debut day, touching the bourse’s 25% limit but now the shares traded at 0.6% below its IPO price of 850 rupiah.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.