JAKARTA (TheInsiderStories) – Indonesian ride-hailing service, Go-Jek, is considering an Initial Public Offering (IPO) with a dual-listing scheme in Indonesia and at an overseas stock market, according to President Andre Soelistyo.
“Eventually, we will launch an IPO,” Soelistyo said after meeting with Indonesia Stock Exchange (IDX) President Director Tito Sulistyo on Monday (05/03).
Unfortunately, he is still reluctant to give certainty when Go-Jek will go public. Nevertheless, he said it would be a privilege if Go-Jek listed shares on the IDX.
Go-Jek is yet to appoint an underwriter for the plan, Soelistyo said, in a sign that details around IPO size, company valuation and how much of the company will be listed are some way off.
However, some bankers have listed Go-Jek’s potential IPO as a key float to track in Asia’s ride-hailing and mobile payments market, which has caught the attention of global investors.
Go-Jek raised a higher than targeted $1.5 billion in a fundraising round from several investors including Google, Temasek Holdings and Chinese technology giants Tencent Holdings and JD.com Inc. The latest round of investments valued Go-Jek at about $5 billion.
Last month, PT Astra International Tbk (IDX: ASII), the country’s largest automotive company, confirmed that it has agreed to invest $150 million in Go-Jek.
Last year the CEO Nadim Makarim confirmed the firm will make the expansion of its digital-payment service Go-Pay in 2018 a top priority. The firm has already moved from its roots as a source of cheap motorcycle rides to become Indonesia’s largest food-delivery business.
Currently, Go-Jek customers use Go-Pay to pay for a wide range of services that Go-Jek offers on its mobile app. Makarim’s goal is to let his customers pay for coffee, groceries, tickets and other things outside the realms of Go-Jek’s services.
“2018 will be the year of Go-Pay,” he said, adding that the focus is on signing up partners in Indonesia so its digital wallet can be accepted by both online and offline merchants across the country.
While there’s plenty of competition in digital payment services, including one by its archival Grab. Makarim said Go-Jek is one of the few technology companies that have secured a so-called e-money license, which lets companies provide digital wallet services in Indonesia.
Go-Jek also delivers everything from meals and groceries to cleaners, masseuses and hairdressers across Indonesia’s capital city Jakarta, all at the touch of a smartphone app – helping it become a crucial workaround in a city with some of the worst traffic in the world.