PT Aplikasi Karya Anak Bangsa IPO Predicted to be the Biggest in History

It is reported that PT Aplikasi Karya Anak Bangsa or Gojek will conduct an initial public offering (IPO) at the beginning of the second semester of this year. It is also reported that the fundraising from Gojek’s IPO will be the largest in history.

One market player who is aware of the plan said that the Gojek IPO will raise more than IDR 10 trillion in funds. If true it will be the largest in the history of capital markets.

He also said that Gojek’s IPO will be carried out after the merger process with Tokopedia is complete. According to him, the Gojek IPO document is in process at the Financial Services Authority (OJK).

Launching CNBC Indonesia, the record for the largest IPO is still held by PT Adaro Energy Tbk (ADRO) which recorded the largest IPO in 2008, namely Rp 12.24 trillion. However, another source said the IPO target would depend heavily on the planned merger of Gojek and Tokopedia.

According to CB Insights, currently, Gojek’s valuation is US$ 10.5 billion and Tokopedia’s US$ 7.5 billion or a total of US$ 18 billion or IDR 252 trillion (exchange rate of IDR 14,000). The IPO target can reach IDR 25 trillion with this.

However, Bloomberg estimates the merger between the two has the potential to generate a market capitalization value of US$ 35 billion to US$ 40 billion.

Telkomsel’s Investment in Gojek cannot be Separated from The Merger News

The news of the mega-merger between ride-hailing startup Gojek and e-commerce Tokopedia became increasingly popular after information emerged regarding the name of the merger of the two companies to become GoTo.

Not only involving the two unicorns, but there is also a state-owned telecommunication company, Telkomsel, which is predicted to take the option to increase investment in Gojek for the e-wallet sector.

The cellular operator is known to have a strategic cooperation program and has room to invest up to 300 million or around IDR 4.37 trillion in this ride-hailing and digital payment company.

Responding to this news, Center of Innovation and Digital Economy or INDEF researcher Nailul Huda assessed that Telkomsel’s additional investment plans could not be separated from the planned merger between Gojek and Tokopedia.

If realized, the two companies engaged in digital services will take the floor on the stock exchange, aka holding an Initial Public Offering (IPO). Huda estimates that Telkomsel will pick up the momentum to increase profits from the IPO of the two startups.

“Of course Telkomsel as a strategic Gojek partner will wait for that moment. This is also what investors are eyeing. Telkomsel can benefit from this price difference,” said Huda when contacted, Monday (26/4/2021).

It is Recommended to Wait for the Merger to Actually Occur to Reduce the Risk

Even though it will have the potential to gain high profits, Huda has a slightly different view from some observers who support this merger. Huda suggested that Telkomsel should restrain itself first so that the Gojek and Tokopedia merger processes are truly successful.

This was intended to minimize various risks. Including the problem when the merger process was carried out that it was feared that it would be suspected of being a business monopoly.

“It is better for Telkomsel to refrain from increasing investment before the merger takes place. Because usually later the KPPU (Business Competition Supervisory Commission) will question this merger issue. I think Telkomsel should hold first until the Gojek-Tokopedia merger process is successful because the valuation value is big,” added Huda.

Huda welcomed Gojek and Tokopedia’s plans for a merger which Telkomsel responded well. He stated that Telkomsel’s additional investment in Gojek would make the digital economy conglomerate competition in Indonesia even more fierce.