AAA Go-Jek hails IDX for flotation

Go-Jek hails IDX for flotation

Go-Jek, an Indonesia-based on-demand ride platform backed by corporates Rakuten, Google, Tencent, Meituan-Dianping, Blibli, JD.com and Astra International, is exploring a flotation on the Indonesia Stock Exchange (IDX), Reuters reported today.

Although a timeline and a target size for the initial public offering have not been decided, Go-Jek president Andre Soelistyo said he has met with IDX chief executive Tito Sulistyo to discuss a flotation.

Founded in 2010, Go-Jek started as an on-demand ride-hailing platform but has since expanded into related verticals, such as drug delivery through its Go-Med unit, mobile payments through Go-Pay and phone credit top-ups through Go-Pulsa.

Go-Jek has not yet appointed an underwriter for the offering. An IPO in Indonesia would legally require Go-Jek to be profitable within two years of listing, and it is also considering a dual listing, Soelistyo said.

The announcement of Go-Jek’s IPO plans comes only a few days after news publication DealStreetAsia reported the company was recruiting professional drivers in Vietnam as it seeks to expand further across Southeast Asia.

The company already operates in Indonesia and the Philippines, and is present indirectly in Bangladesh where it owns a stake in ride-sharing app developer Pathao. It is also expected to enter additional sectors such as electric vehicle charging.

Go-Jek is currently raising $1.5bn in funding at a reported valuation of $5bn, in a round that already features internet company Tencent, which made a lead investment in May 2017, and a $100m commitment from e-commerce JD.com in August.

Internet technology provider Google and local services platform Meituan-Dianping joined the round in January 2018, alongside Singaporean state-owned investment firm Temasek, private equity firms KKR and Warbug Pincus.

E-commerce firm Blibli and industrial conglomerate Astra International were reported last month to be providing up to $290m for the round, pushing it past its initial $1.2bn target. Global Digital Niaga and BlackRock have also invested, according to DealStreetAsia.

Rakuten Ventures, the corporate venturing unit of e-commerce firm Rakuten, backed a $550m round for Go-Jek in 2016 that included KKR, Warburg Pincus, Capital Group Private Markets, Formation Group, Farallon Capital, DST Global, Sequoia India and Northstar Group.

Go-Jek has not disclosed earlier funding details, though it named Rakuten Ventures, Sequoia India, DST Global, Formation Group, Northstar Group and its NSI Ventures subsidiary as returning investors for the 2016 round.

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