GoTo shares slide towards IPO price level – Business



Jakarta ●
Thu 21 April 2022

technology, startup

Shares of Indonesia’s biggest tech company GoTo closed down 5.59% at 338 rupees per share on Wednesday, returning to its initial public offering (IPO) price and triggering a measure of stabilization on its seventh trading day. negotiation.

GoTo, a merger between ride-hailing company Gojek and online marketplace Tokopedia, rose 1.67% earlier on Wednesday before erasing its gain. The company debuted on the Indonesia Stock Exchange (IDX) last week after raising $1.1 billion in the world’s fifth-largest initial public offering this year, selling just 4% of its shares.

GoTo had a scheme in place to avoid a sharp drop in its share price in its first month.

PT CGS-CIMB Sekuritas Indonesia has been appointed as a “stabilizing agent” to repurchase shares in the market if the price reaches the IPO level of Rs 338 or less.

GoTo reported in a stock market filing that the stabilization measure was triggered on Wednesday. A total of 1.22 billion shares were bought at 338 rupees, according to data from brokerage CGS-CIMB Sekuritas, attached to the filing.

The greenshoe option was set for a maximum of 6.09 billion shares, according to GoTo’s IPO prospectus.

Strong IPO Gains

GoTo soared as much as 23% on its IDX debut in April after a much-watched IPO, fueling expectations of new offerings coming from the sector in Southeast Asia’s biggest economy.

The IPO took place despite the withdrawal of many IPOs around the world due to the Russian-Ukrainian war and rising interest rates.

“There was no perfect timing for this IPO, but we focused on Indonesia, with a local investor audience,” said GoTo CEO Andre Soelistyo, a former capital banker. -investment that led Gojek’s push into consumer services.

The IPO made GoTo Indonesia the third-highest-valued publicly traded company at $31.6 billion, along with state-owned Telkom Indonesia, and after private lender Bank Central Asia (BCA) and lender public Bank Rakyat Indonesia (BRI).


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