GOTO IPO

Summary

The video discusses Goto's upcoming IPO, a merger of two major Indonesian tech companies, Gojek and Tokopedia. It highlights the IPO details, including the offer price range and expected funding, alongside Goto’s growth and challenges. Despite continuous losses, Goto has seen strong revenue growth driven by its diversified business model, including e-commerce, financial services, and transportation. The company is exploring international listings and new ventures, such as electric vehicles. However, concerns about its large valuation and the stability of its retail business are raised. The video offers insights into Goto's potential and its future as an investment.

Takeaways

• 😀 GOTO, a merger of Gojek and Tokopedia, is preparing for its Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX).
• 😀 The IPO price for GOTO shares is expected to range from 316 to 346 IDR, with an estimated capital raise of 17.9 trillion IDR.
• 😀 GOTO plans to target international markets with listings in NASDAQ and the Singapore Stock Exchange (SGX) later in 2023.
• 😀 The funds raised from the IPO will primarily go towards customer acquisition, marketing, technological development, and innovations.
• 😀 GOTO's shares will be divided into two classes, A and B, with Class B shares offering more voting rights to the founders and key stakeholders.
• 😀 Major shareholders include William Tanuwijaya (Tokopedia CEO), Andri Sulistyo (GOTO CEO), and others, with the founders holding substantial voting power.
• 😀 GOTO's financial performance shows growth in gross transaction value (GTV) and revenue, but the company is still operating at a loss.
• 😀 The company aims to expand into new sectors, including electric vehicles, through a partnership with a Taiwanese startup, offering potential growth avenues.
• 😀 GOTO’s valuation for the IPO is estimated at 400 trillion IDR, which is a significant amount compared to other major companies in Indonesia.
• 😀 Despite its losses, GOTO is considered a long-term growth opportunity due to its dominant position in Indonesia’s tech and digital economy.
• 😀 Concerns remain regarding the sustainability of profits in GOTO's retail business, which is facing challenges similar to companies like Uber and Grab.

Q & A

What is the significance of Goto's IPO for the Indonesian stock market?

Goto's IPO is considered one of the largest in Indonesia's history, marking a significant milestone for the country's stock market. It has attracted attention due to its combination of two major tech companies, Gojek and Tokopedia, making it a pivotal moment for investors in Indonesia.

Why is Goto's IPO offering only 4.35% of its shares to the public?

The limited 4.35% share offering in the IPO is because Goto's primary target market is overseas. Goto plans to list on foreign exchanges like Nasdaq and possibly the Singapore Stock Exchange, where a larger portion of shares will be offered.

How will the funds raised from the IPO be used?

The funds from Goto's IPO will primarily be used for business expansion, such as customer acquisition, marketing, technology development, and innovation. The allocation is designed to strengthen Goto’s competitive position in the market.

What are the key differences between Series A and Series B shareholders in Goto?

Series A shareholders in Goto have common shares with one vote per share, while Series B shareholders, including key executives, hold shares with more voting power. Series B shares have 30 votes per share, giving executives more influence in the company.

What is the rationale behind the skepticism about Goto's financial performance?

Many investors are skeptical about Goto due to its continuous losses, amounting to trillions of rupiah since its inception. Despite this, its performance shows signs of improvement, and major investors back the company, which leads some to view Goto differently from the average investor.

What is Goto's Gross Transaction Value (GTV), and why is it important?

Goto's Gross Transaction Value (GTV) refers to the total value of transactions conducted on its platform, including services like Gojek and Tokopedia. It is a key metric for measuring the company's business scale and performance, as it reflects the volume of transactions, which Goto takes a small percentage of as revenue.

What challenges does Goto face in its retailing business model?

Goto faces significant challenges in its retailing business, similar to international companies like Uber and Grab, which have struggled to achieve consistent profitability. The competition in the retail sector is tough, and Goto must figure out how to maintain a profitable model while serving a vast market.

How does Goto plan to integrate electric vehicles into its business?

Goto has partnered with a Taiwanese startup, Gogoro, to introduce electric vehicles, starting with electric motorcycles. This partnership will allow drivers in the Gojek network to use electric motorcycles with interchangeable batteries, further expanding Goto’s environmental sustainability efforts.

What does Goto's future hold with regards to innovation in financial services?

Goto is focusing on expanding its financial services through products like GoPay and Gopay Later. The company plans to offer more innovative solutions, such as UMKM financing and credit scoring, using its vast consumer transaction data to enhance its offerings and improve customer experience.

What are the potential risks for investors considering Goto’s high valuation?

Goto's high valuation of around 400 trillion rupiah presents risks for investors, as it has surpassed the valuation of well-established companies like BCA and Indofood. This may limit the potential for rapid returns, and investors should consider Goto as a long-term investment rather than expecting quick gains.