GoTo issued its prospectus on Tuesday, revealing that 10 percent of the IPO funds will be set aside for its business arms in Singapore and Vietnam. The rest will go to its business in Indonesia, with GoTo and e-commerce arm Tokopedia getting 30 percent each, e-wallet GoPay getting 25 percent and multifinance arm PT Multifinance Anak Bangsa (MAB) getting 5 percent.

“With our future business strategy, there are a lot of investments to be made in technologies and various resources,” GoTo CEO Andre Soelistyo said on Tuesday.

Read also: GoTo merger boosts RI's digital economy

The prospectus was issued a few months after Gojek and Tokopedia announced their merger to form GoTo Group on May 17, 2021, in response to tightening competition for Southeast Asia's largest digital economy from Singapore-based ride-hailing giant Grab and Singapore’s SEA Limited, the publicly listed parent of e-marketplace Shopee.

Andre also reaffirmed GoTo's plan to undergo a dual-listing, even though it was not yet finalized. The company is reported to be planning a listing in the United States.

GoTo posted a Rp 7.59 trillion loss in July last year, narrowing the Rp 10.05 trillion loss posted during the same period in 2020. Without specifying a timeline, Andre said the company had laid out several strategies to turn a profit, such as increasing user and transaction volumes to raise commission and marketplace fee revenues while slashing expenses by improving logistics and automating user acquisition and retention using machine learning.

“Therefore, growth in revenue would be faster than the rise in expenses, automatically granting our company a profit,” Andre said.

In the IPO, GoTo seeks to raise at least Rp 15.2 trillion, along with an additional Rp 2.3 trillion if a greenshoe option was exercised. The figure is lower than that of the first unicorn IPO in Indonesia, Bukalapak (BUKA), which raised $1.5 billion last year.

GoTo is offering its share under the ticker GOTO at between Rp 316 and Rp 346 apiece. The company is aiming for a market cap of between Rp 376.6 trillion and Rp 413.7 trillion, which would be third-largest in the IDX behind private lender Bank Central Asia and state-owned Bank Rakyat Indonesia, even though the share price is much lower than Bukalapak's pricetag of Rp 800 apiece.

David Agus, managing director at PT Trimegah Sekuritas Indonesia, which is also one of GoTo’s underwriters, said on Tuesday that the stock price was was set based on current market conditions and GoTo’s future prospect.

“Investors ought to see in the long term, especially the potential of digital business growth in Indonesia,” he said at the same event.

He added that the greenshoe option provided a means to stabilize share prices up to a month after the listing. The additional shares are being held as treasury stocks so that investors’ share prices would not be diluted if the option was exercised.

GoTo offers between 48 billion and 52 billion shares, or 4.35 percent new shares issued in this IPO, which falls short of the bourse’s minimal of 7.5 percent, but the company did not say how it would meet that requirement.

The company also became the first in Indonesia to use the newly issued multiple voting share (MVS) regulation, which enable founders and early investors to retain control over the company.

Read also: Bukalapak aims to raise $1.5 billion through giant IPO

Nailul Huda, who heads the Center of Innovation and Digital Economy at the Institute for Development of Economics and Finance (Indef), said on Tuesday that GoTo’s lower share price reflected a well-adjusted expectation amid uncertainty in tech company stocks after Bukalapak shares flopped by losing more than half of their initial offer price.

Moreover, investors in Indonesia were not as familiar with tech company valuations, which were based on future values instead of current earnings and financial standings.

“That means they are not as optimistic as Bukalapak to acquire new capital. They tried to remain realistic amid current market conditions that were not as good as many hoped for,” he said.

And despite raising less capital, "the funds raised will make GoTo fiercer to go head to head with Shopee and Grab".

Sucor Sekuritas equity analyst Paulus Jimmy said on Tuesday that GoTo had bright prospects as Indonesia was expected to undergo rapid digitalization in the coming years.

Paulus advised investors to look closely at GoTo’s path toward profitability and how well the company delivered on promised growth. But in the short term, the greenshoes option would help keep stock prices stable in the days after the IPO.