Alibaba, SoftBank Score 2022’s. First IPO Windfall With GoTo Group ; whose business spans ride-hailing, e-commerce and fintech, became one of the world’s biggest listings this year.
Giving a much needed boost to early backers including China’s Alibaba Group Holding Ltd. and SoftBank Group Corp.’s Vision Fund.
The Jakarta-based company raised $1.1 billion last week; meaning the value of the two investors’ stakes will be almost $5 billion; combined following the share sale. That marks their first big windfall from an initial public offering; this year after their stocks were both battered in past months.
For GoTo’s top executives, the success of taking the company public isn’t translating; into the type of riches recently associated with Asian IPOs.
Chief Executive Officer Andre Soelistyo will have a stake valued at $235 million after the listing; while the holdings of Kevin Aluwi and William Tanuwijaya ; who co-founded the startups that later merged to produce Indonesia’s giant, will be worth $213 million and $494 million; respectively, according to Bloomberg calculations based on the IPO prospectus.
Andre SoelistyoPhotographer: Paul Miller/Bloomberg
It’s not uncommon that early backers see a huge payday when a startup goes public; — that’s the incentive for taking the risk to invest. What’s notable in this case is how much the founders’ ownership; got diluted in the various funding; rounds that brought in billions of dollars.
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