Heaptalk, Jakarta – the IPO of GoTo, a leading ride-hailing and e-commerce Group from Indonesia, is ongoing and will close on April 7th, 2022, and based on the estimation, the Group will officially be listed on Indonesia Stock Exchange (IDX) on April 11th, 2022.
Priced at Rp338 from the initial range of Rp316 – Rp346, GoTo claimed that the stakes were welcomed with great enthusiasm by society. However, perceiving the slack of world economic growth due to the pandemic that was exacerbated by the Russia-Ukraine war and the bad history of the prior startups that performed IPO, the Group’s action later aroused doubts.
The CEO of Swarnabumi Maju Bersama and an experienced stock market observer, Wima Bachtiar, provided his view on the issue, “The trend towards GoTo’s action is quite big, but several investors have swollen a bitter pill from Bukalapak IPO as the price sharply tumbled.”
In addition, he added that the competitor’s terrible history, Grab, which even enters the list of Nasdaq’s worst newcomers, has made the investors’ appetite for GoTo’s share weaken significantly.
However, the possibility for the Southeast Asia decacorn’s share price to soar is keeps opening as the bulk of investors still expect that the IPO will mimic Bukalapak’s debut, thus they can earn a profit on the first and second days of the listing.
“The market optimism toward GoTo’s public offering is not as tremendous as Bukalapak. But, several people still believe in the great name of GoTo,” voiced Wima.
Wima conveyed that the point of whether the Group’s stakes are worth buying or not should be based on investment plans. For a trader who wants to play in a very short term, the action is likely to generate profit if they are smart at speculating the right time to exit, while for the medium-term investment, buying the stocks is not recommended.
“From its prospectus, the Group still experienced a loss of about USD800million as of September 2021, so the portfolio is still unattractive. Moreover, the prospectus also mentioned that the Group does not guarantee to earn profit shortly, and this statement is considered as a warning for investors,” Wima said in a statement.
In the case of long-term investment, Wima uttered that the tolerance of the measure is high since, normally, tech companies spend ten years or more to obtain profit, thus the long-term market development remains a mystery.
Furthermore, responding to GoTo’s step following the greenshoe scheme, Wima stated that the number, namely USD160 million or around 15% of the total fresh capital, still cannot stabilize the stock prices as the backup plan’s amount is diminutive.
“Greenshoe option will not bring a great effect as the number cannot stabilize the stocks’ price,” said Wima in his closing statement. (WLN)
