In today’s briefing:
- GoTo IPO: A No Go
- Matahari Department Store (LPPF IJ) – All Eyes to the Podium
- GoTo IPO: Peer Comparison and Valuation
GoTo IPO: A No Go
- Superapp GoTo has filed for an IPO to list its shares on the Indonesian Stock Exchange to raise US$1.2bn at a market capitalisation of US$25.0bn.
- The company plans to use most of the proceeds on developing its businesses including Gojek, Tokopedia and fintech services.
- Our analysis on the company’s financials suggests the company has been burning cash to grow its business and may not be able to generate any profits in the near future.
Matahari Department Store (LPPF IJ) – All Eyes to the Podium
- Matahari Department Store’s results marked a turning point in terms of profitability, and this year will see the company back in expansion mode, with a new strategy in place.
- Management is pushing hard to entrench its position in existing categories as well as pushing into new ones, with an omnichannel approach and new partnerships in place.
- Matahari Department Store has the potential for a re-rating as it regains its place on the winning podium amongst Indonesian retailers in very reasonable valuations.
GoTo IPO: Peer Comparison and Valuation
- Superapp GoTo (1379371D IJ) has filed for an IPO to list its shares on the Indonesian Stock Exchange to raise US$1.1-1.25bn at a valuation of about US$24-26bn.
- The company plans to use the proceeds to develop its business including for customer acquisition, product development and sales and marketing.
- Our SOTP valuation implies that GoTo’s shares are overvalued at the indicative IPO price range.
Before it’s here, it’s on Smartkarma
