Indonesia’s GoTo Braves Choppy Markets With $1.1 Billion IPO Plan

The company, known formally as PT GoTo Gojek Tokopedia Tbk, aims to raise the equivalent of about $1.1 billion at the midpoint of its price range. That would make the Jakarta share sale one of the world’s five biggest initial public offerings so far this year, and the fifth-largest ever in Indonesia, Dealogic data shows.

The planned listing comes amid global market volatility, stoked by Russia’s invasion of Ukraine, elevated inflation and the prospect of increasing U.S. interest rates. Some companies have pulled IPOs recently, while Southeast Asian tech stocks have come under pressure.

However, Indonesia’s overall stock market has outperformed rivals, with the IDX Composite Index of Jakarta-listed stocks gaining more than 5% so far this year.

“Indonesia is one of the largest and most exciting growth markets in the world, as reflected in the resilience our capital market has shown this year, against a backdrop of global market volatility,”

Andre Soelistyo,

GoTo’s chief executive, said Tuesday.

As of Monday’s close, shares in Singapore-based

Grab Holdings Inc.

and

Sea Ltd.

had fallen 58% and 61%, respectively, so far this year. Shares in Indonesian online-mall operator

PT Bukalapak.com

have fallen more than 67% from last year’s IPO price.

This will be the first IPO in Indonesia with supervoting stock for key shareholders, including the company’s founders. Such corporate-governance arrangements are common for tech listings in markets such as New York and Hong Kong, but weren’t possible in Jakarta until a new regulation was introduced last year by the financial-services authority.

GoTo’s supervoting stock will have 30 votes per share, and that could increase to up to 60 votes if those shareholders’ total voting rights fall below 50%. The dual-class share structure gives the company’s founders the ability to make decisions quickly, Mr. Soelistyo said.

GoTo was created by the merger of two predecessors, Gojek and Tokopedia, and competes with companies including Grab and Sea. Indonesia is the most populous country in Southeast Asia, a region of more than 600 million people.

Gojek is best known for its app connecting motorcycle taxis with passengers in places like greater Jakarta, a densely populated metropolitan area of some 30 million people. It later expanded into services such as payments, housecleaning, and delivering food and parcels. Meanwhile, Tokopedia operates an online consumer-to-consumer marketplace. Its name blends the Indonesian word for store—toko—with part of the word encyclopedia.

Jakarta-based GoTo plans to offer new shares at a price of 316 to 346 Indonesian rupiah, the equivalent of about 2.2 cents to 2.4 cents. That implies a market value of $26.2 billion to $28.8 billion. It expects its shares to debut in early April. Last year, The Wall Street Journal reported that GoTo was targeting a valuation of between $35 billion and $40 billion.

The company plans to pursue a second listing outside of Indonesia and is assessing options for the venue, depending on market conditions, executives said Tuesday. GoTo previously said it wanted to pursue listings in Jakarta and New York.

The shares being offered for sale represent up to 4.35% of the company’s enlarged share base.

The company said it will hand out some shares to its drivers and let some merchants and consumers buy allocated shares as part of the IPO.

GoTo’s loss totaled 11.58 trillion rupiah for the first nine months of last year, equivalent to about $808 million, and an 11% increase from the same period a year earlier. Net revenue rose 45% for the same period to 3.4 trillion rupiah. The company said it had more than 55 million annual transacting users as of end-September.

Write to Dave Sebastian at dave.sebastian@wsj.com