Gojek, Tokopedia to Merge, Creating Indonesian Tech Big. An IPO Will Observe.

Textual order size

Gojek riders waited for provide orders in Surabaya, Indonesia, on Monday.

Juni Kriswanto/AFP/Getty Photos

A classic line about Indonesia—the fourth-most populous country—describes it as “the enviornment’s splendid invisible object.” One amongst the fastest-rising economies in Asia with 275 million participants, trailing most attention-grabbing China, India and the U.S., it has trusty one firm listed on a foremost U.S. stock trade.

That's about to trade.

Final month, the toddle-sharing giant Seize announced plans to merge into a U.S.-listed particular-cause acquisition firm in a deal that will value the firm at shut to $40 billion. The deal, anticipated to shut in July, might perchance perhaps be the splendid SPAC merger ever. Seize will trade on Nasdaq below the logo GRAB, as would be anticipated.

One other astronomical Indonesian tech-stock listing is within the works for later within the year, this time for a trace-fresh firm called GoTo Neighborhood. Unveiled on Monday, GoTo represents the merger of two of Indonesia’s foremost internet companies: the e-tailer Tokopedia and the toddle-sharing, digital-payments, and provide firm Gojek.

The blended firm, created via the splendid merger in Indonesian history, might perchance perhaps be the country’s splendid tech trade, with unfriendly transaction value in 2020 of extra than $22 billion. GoTo has extra than 2 million registered drivers, extra than 11 million carrier provider companions, and additional than 100 million day to day packed with life customers. In accordance with the firm, GoTo will account for approximately 2% of Indonesia’s unfriendly domestic product.

In an interview with Barron’s, GoTo President Patrick Cao, who has been president of Tokopedia, acknowledged the companies might perchance be “higher together, growing a odd ecosystem to higher support traders, merchants and drivers.” He renowned that the two companies, logistics companions for years, allotment principles and values, and argued that the deal will originate an unmatched combination of e-commerce, logistics, achievement, and financial products and services.

Gojek operates in Indonesia, Singapore, Thailand, and Vietnam, while Tokopedia is centered particularly on Indonesia. Cao says there don't appear to be any rapid plans to magnify Tokopedia’s reach into fresh markets, given the barely modest penetration of e-commerce In Indonesia. He estimates the total at trusty 5% to 10%. 

Cao acknowledged Tokopedia serves 97% of the Indonesian population—no little feat in a country that includes extra than 17,000 islands, 6,000 of them inhabited. He acknowledged that two-thirds of Tokopedia orders are delivered by the subsequent day and that the firm is working to transform most of these to similar-day provide.

Terms of the deal weren’t disclosed. In accordance with extra than one reports, Gojek holders will hold 58% of the blended firm with Tokopedia holders taking the opposite 42%.

Cao confirmed that the firm expects to walk public later this year, likely with a dual listing in Contemporary York and on the Indonesia Inventory Commerce. The firm is anticipated to survey a valuation within the $35 billion to $40 billion differ, akin to what Seize is looking ahead to.

The firm hasn’t made up our minds whether to conduct a outdated initial public offering or to discover Seize’s lead and merge with a SPAC. GoTo might perchance perhaps be the company trace, while maintaining both the well-established Gojek and Tokopedia brands.

Goldman and Citi contain been advisers on the transactions, so it wouldn’t be surprising within the event that they additionally lead the frenzy to walk public later this year. 

Merchants within the blended firm embody Alibaba Neighborhood (ticker: BABA),


(FB); Google, owned by Alphabet (GOOGL);




(KKR); PayPal (PYPL); Sequoia Capital India; SoftBank Imaginative and prescient Fund 1; Telkomsel, the Indonesian cell telecom firm; Temasek; Tencent;


(V); and Warburg Pincus, amongst others.

Write to Eric J. Savitz at eric.savitz@barrons.com

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