Fanny Potkin. Anshuman Daga. Stefanno Saulaiman

SINGAPORE/JAKARTA -GoTo, which raised $1.1 billion through a cautious IPO is hoping for a stable market debut. Meanwhile, a booming local stock market confirms that Indonesia’s biggest tech company can buck a downtrend in tech stocks.

Formed by the May merger of ride-hailing-to-payments company Gojek and e-commerce giant Tokopedia, PT GoTo Gojek Tokopedia Tbk will debut in Jakarta on Monday in the culmination of one of the world’s biggest initial public offerings (IPO) so far this year.

The debut, which will take advantage of the new listing rules, is a landmark for Southeast Asia’s $70 billion digital economy. Record venture funding has spawned a wave of startup companies.

GoTo is considered the best-known technology company in Southeast Asia. According to Shane Chesson (a partner in Openspace Ventures and one of Gojek’s earliest investors), diversification is going be very important relative to its peers.

Indonesia’s digital economy is likely to grow nearly five times to up to $330 billion by 2030 from 2021, showed a study by consultancy Bain & Co and GoTo backers Alphabet (NASDAQ:) Inc and Temasek Holdings Pte Ltd.

Grab Holdings Ltd. and Sea Ltd, both U.S. listed peers, operate in Southeast Asia. GoTo is focused on Indonesia. GoTo has 2.5 million drivers and 14 million merchants. It also boasts 55 million transacting customers annually. These businesses span millions of small- and medium-sized companies across the archipelago.

CrossASEAN Research’s founder, Angus Mackintosh said that GoTo’s IPO could have been prevented if the company offered local investors only and was therefore small. This should indicate that the company has more support.

GoTo sells 4% of its shares, with the majority being taken up by funds. SoftBank Group Corp Vision Fund 1 backs GoTo. Alibaba (NYSE: ) Group Holding Ltd, Abu Dhabi Investment Authority. GoTo is expanding its investor base with the allocation of shares to 600,000. drivers

The bourse will be the first to issue multiple classes of voting shares, and it will tap new rules that allow unprofitable companies to list on its main board.

Analysts believe that both the value and the size are below what was expected. This suggests that GoTo aims to avoid a similar experience as ecommerce peer PT Bukalapak.com Tbk.

Bukalapak sold 25% equity in July to raise $1.5 billion after originally targeting $300 million. Although it started strongly, its stock plunged 25% within days. The price of the stock has now fallen to half that which was originally intended.

GoTo valued its shares at $338 (0.0235) which was the top end of GoTo’s indicative range.

Investors are entitled to an eight month lock-in. For multiple class voting shares, the lock-in is two years. Bukalapak had an eight month lock-in. However, certain funds were able to immediately sell 10% or more of their holdings.

GoTo, valued at $28billion, will be Indonesia’s fourth-most valuable firm. Analysts estimate an index weight of as high as 9%.

One GoTo investor said that once you are in the index all local funds will buy quasi-automatically. With 9% this year, Asia’s IDX stands at an all-time high.

Patrick Cao of GoTo stated that pricing was more prudent in these weak markets. But, GoTo expects to list in support of fundraising and plans on listing overseas within the next 2 years.

Jianggan Li from advisory Momentum Works stated, “It’s a challenging market in the public marketplace now, with DiDi Global Inc market caps, Grab DeliveryHero and other market caps falling below GoTo target valuations,”

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