This year, Indonesia became the best spot for investors in the stock market with gains of 9.9%. Foreigners start looking forward to launching tech IPOs as the sector performs better. GoTo is likely to become a benchmark with a bulk of foreign investors. But doubts continue to rise as Bukalapak plunged at 61% on GoTo.
Bukalapak debut reached at 24% higher last year after its upsized IPO. But currently, it is down 61% from the Rp850 issue price. Due to GoTo’s regulatory requirement, insiders delay shares. The requirements include a two-year lock up on GoTo’s Series B’s multiple voting rights. As an addition there is also an eight-month lock-up on the pre-IPO Series A shares.
Last year, the regulator approved the multiple voting scheme as the regulatory in the transaction. Series A shares for around 40.6bn have been sold in the IPO. Although some people might be doubtful or skeptical, GoTo’s other performance is good. GoTo reported that around 300.000 investors participated in the offering. It was the biggest boom in the Indonesian Stock Exchange.
The company specially allocated at $20m of shares to driver partners under mutual cooperation share program. Although the large IPO creates doubt and skepticism, GoTo’s CEO Andre Soelistyo is positive that GoTo will attract more investors despite market volatility. It is highly reflecting the current massive Southeast Asia demand on e-commerce and financial technology services.
The issuers like Gojek and Tokopedia plan to sell up to 10% of its capital in a U.S. listing later this year. Based on Indonesian regulations, it has more than two years to elevate the free-float on the local exchange to 7.5%. Capital purpose spending would be the use of IPO. The bookrunners are Indo Premier Sekuritas, Mandiri Sekuritas, and Trimegah Sekuritas.