GoTo IPO debuts in politically smart fashion

A Go-Jek driver rides a motorcycle on a road in Jakarta, Indonesia, Dec, 15, 2017. REUTERS/Beawiharta/File Photograph – RC2UIT9UF86W

HONG KONG, April 11 (Reuters Breakingviews) – GoTo’s (GOTO.JK) bosses racked up political factors on its Monday debut. Leading brass rode to the Jakarta ceremony on possess-brand electrical mopeds even though the $1.1 billion deal, the very first under new rules created to lure startups, boasted a record quantity of individuals. Shares in the $28 billion e-commerce, trip-hailing and fiscal engineering firm then jumped more than 20% in opening trade. go through a lot more

GoTo’s float follows a calendar year in which other warm Asian tech IPOs have soared on open only to falter quickly right after, together with Korea’s Coupang , Singapore-primarily based Grab and community rival Bukalapak (BUKA.JK). None of 3 now trade within 50% of their listing selling prices. At 28 situations trailing revenue, unprofitable GoTo is roughly in line with Grab, its regional rival.

The company’s push towards applying electric powered scooters is political catnip in polluted Jakarta giving its drivers a piece of the float widens its investor foundation and generates community goodwill. It doesn’t hurt that the commodities-major Jakarta bourse is up 11% this calendar year. Most likely GoTo’s political nous will support hold its share selling price from dropping into decreased gear. (By Jennifer Hughes)

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