"Dual Listing" May Be Best Option for GoTo

KOMPAS/RADITYA HELABUMI

Gojek and Tokopedia officially announced the merger agreement through the formation of the GoTo Group on Monday (17/5/2021).

JAKARTA, KOMPAS — Listing its shares on two stock exchanges, or a dual listing, is considered to be the most feasible option for GoTo. With an estimated valuation of about US$18 billion, or about Rp 261 trillion at an exchange rate of Rp 14,500, the technology giant formed from the merger of Gojek and Tokopedia will be among the top 10 companies listed on Indonesia Stock Exchange (IDX).

Based on its valuation, if GoTo offers about 10 percent of its shares in its initial public offering (IPO) through the IDX, it will provide a stock supply worth about Rp 21 trillion in the local market. This amount is considered too large to be absorbed in the domestic market. In the history of the stock exchange, the largest IPO on the local stock exchange was Rp 12.4 trillion, when coal company PT Adaro Energy sold some of its shares. PT Indofood CBP Tbk was in second place with IPO proceeds of about Rp 6.2 trillion.